2. an investment company pays 9% compounded semiannually. you want to have $8,000 in the future. how much should you deposit now to have that money 5 years from now?

$5151.42

Step-by-step explanation:

The formula you need is

where A(t) is the amount after the compounding, P is the initial investment, r is the interest rate in decimal form, n is the number of compoundings per year, and t is time in years.  The info we have is

A(t) = 8000

P = ?

r = .09

t = 5

Filling in we have

Simplifying a bit and we have

Now we will add inside the parenthesis and raise 1.045 to the 10th power to get

8000 = P(1.552969422)

Divide away the 155... on both sides to solve for P.

P = $5151.42

step-by-step explanation:

you can add the two numbers and divide the result by 2. or you can find the gap between the two numbers and add half of this to the smaller number.