Question

What amount of money will accumulate to $192,400 in 6 years and 11 months at the interest rate of 5.36% compounded semi-annually? $_______

Answer 1

We will have the following:

$\begin{gathered} 192400=A(1+\frac{0.0536}{2})^{(11/12)(2)}\Rightarrow A=\frac{192400}{(1+0.0536/2)^{(11/12)(2)}} \\ \\ \Rightarrow A=183293.7505...\Rightarrow A\approx18329375 \end{gathered}$

So, the original quantity was approximately $183 293.75.