Question

Jordan of ers an interest rate of 8%/a compounded semi-annually. How much should Jordan m est now, to the nearest dollar, so that he has enough money to go on a family trip in 3 years? 38. needs $6 000 to take his family on a trip. He is able to make an ivestment which

Answer 1

Answer:

Step-by-step explanation:

Given that Jordan wants 6000 dollars after 3 years for making a family trip.

We have to find out the amount invested now to get the required 6000 dollars

We have interest of 8% compounded semi annually.

equivalent rate = $\frac{8}{200} =0.04$

If P is the amount invested now, then

$P(1+0.04)^{3*2} =6000\\P =6000(1.04)^{-6} \\P=4741.89$

He has to invest 4741.89 dollars now