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marta [7]
3 years ago
11

Please help!!!

Mathematics
1 answer:
svetoff [14.1K]3 years ago
3 0

Answer:

Step-by-step explanation:

<u>Compound Interest</u>

It's the type of financial calculations that includes the interest of previous periods into the new interests earned by some initial investment or principal P.

If we want to compute the final value FV of a series of n payments R at a fixed compound interest rate i, then

FV=F_m\cdot R

Where

\displaystyle F_m=\frac{(1+i)^n-1}{i}

The question provides us the following data

i=10% compounded twice a year

n=3 1/2 years

FV=15,000

We need to convert the number of periods and the interest rate to a semester base:

\displaystyle i=\frac{10}{100\cdot 2}=0.05

n=3.5\cdot 2= 7\  semesters

Let's calculate Fm

\displaystyle F_m=\frac{(1+0.05)^7-1}{0.05}=8.142

Knowing that

FV=F_m\cdot R

Solving for R

\displaystyle R=\frac{FV}{F_m}=\frac{15,000}{8.142}=1,842.30

Sara should deposit $1,842.30 twice a year to have the down payment for her own restaurant

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