Answer:
Step-by-step explanation:
A = P[1 + (r/n)]^(nt)
Look the formula up online to find out what each variable represents if needed.
We are solving for P, which is the principal amount 5 years back.
Substitute 11,000 for A (total amount), 4.5% for r(rate), 2 for n(number of times -- in this case, semiannually), and 5 for t(time -- 5 years).
11000 = P[1+(0.045/2)]^(2x5)
11000 = P (1.0225)^10
11000 = P (1.2492) approx.
Divide both sides by 1.2492 to find P.
P = $8805.64 (approx)
I know that the answer I got is not an option listed. However, I feel that my workings may help other people to answer this question or give them inspiration to answer similar questions. Therefore, I will leave this answer up.
Thanks, and sorry I couldn't do much.
