FormulasIn the provided formulas, A is the balance in the account after t years, P is theprincipal investment, r is the annual interest rate in decimal form, n is the numberof compounding periods per year, and Y is the investment's effective annual yieldin decimal form.A=P[1+-)P =AnntA = PetnY = (1 + -) ² - 1 How much money should be deposited today in an account that earns 5% compounded semiannually so that it willaccumulate to $13,000 in three years?1 Click the icon to view some finance formulas.The amount of money that should be deposited is $(Round up to the nearest cent.)

Interest rate is 5% Compounded semi -annually Future Value or A is $13,000 Time period is 3 years…

Answered: low much money should be deposited…

low much money should be deposited today in an account that earns 5% compounded semiannually so that it wil accumulate to $13,000 in three years? Click the icon to view some finance formulas. ***

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Question

Formulas
In the provided formulas, A is the balance in the account after t years, P is the
principal investment, r is the annual interest rate in decimal form, n is the number
of compounding periods per year, and Y is the investment's effective annual yield
in decimal form.
A=P[1+-)
P =
A
n
nt
A = Pet
n
Y = (1 + -) ² - 1

How much money should be deposited today in an account that earns 5% compounded semiannually so that it will
accumulate to $13,000 in three years?
1 Click the icon to view some finance formulas.
The amount of money that should be deposited is $
(Round up to the nearest cent.)

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