00:01
So in this problem, we want to know how much money should be deposited today in an account that earned 8 % compounded semi -annually, which means twice a year, so that it accumulates $13 ,000 in three years.
00:17
The amount of money that we should deposit is what we're looking for.
00:21
So we're going to use this formula down here, where a is going to be $13 ,000.
00:28
We're looking for p, the principal amount.
00:32
Our rate is 8%, so 0 .08.
00:35
It's compounded semi -annually, so n is 2, and t is 3.
00:42
So let's plug everything in.
00:51
So 13 ,000 equals p...