Question

After 6 years, an investment is worth $8479. If the money was invested at 9% interest compounded semiannually, what was the initial investment?

Answer 1

\[P \left(\frac{R}{N}+1\right)^{\text{NT}}=\text{Amount} \text{Final}\]

Answer 2

Final Amount=8479

Answer 3

R=.09

Answer 4

N=2

Answer 5

T=6

Answer 6

\[P \left(\frac{.09}{2}+1\right)^{2*6}=8479\]

Answer 7

\[P =\frac{8479}{\left(\frac{.09}{2}+1\right)^{2*6}}\]

Answer 8

P=4999.76