Question

how much do i need to deposit to get 25000 in 6years 5%compounded semiannually, what is the formula thank you in advance

Answer 1

Well, compounding semiannually your effective interest rate is defined as:

r = (1 + 0.05/2)^2 - 1 = 5.0625% interest, yearly.

So over 6 years that's going to be d*(1.050625)^6 where d = deposited amount.

So you have d*(1.050625)^6 - d = 25000. Solve for d.

Answer 2

ty rav will now have a go at it

Answer 3

A = Final Amount
P = Principle (starting balance)
r = Interest rate (as a decimal)
n = number of compounds per year
t = time (in years)
\[a=p(1+\frac{ r }{ n})^{nt}\]

Answer 4

ty will try it now