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2 answers:
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Answer:
$83,320
Step-by-step explanation:
The formula to apply here is;
where;
A=Amount at the end
P=the amount to invest/principal
r=rate of interest as a decimal
n=number of compoundings in a year
t=time in years
Given that;
A=$400,000
P=?
r=8%=0.08
n=2
t=20
Substitute values in equation
P=$83,320 (to the nearest dollar)