Find the future amount that should be set aside today to yield the desired future amount.
future amount needed - $6,000
interest rate - 2%
compounding period - semi annually
investment time - 2 years
i present value of $1.00 rate per period periods 0.5% 1% 1.5% 2% 2.5% 3% 4% 5% 6% 8% 10% 12% 0.99502 0.99010 0.98522 0.98039
the present value is $ . (round to the nearest cent as needed.)

We have to set aside $5765.90 to earn what we want

Step-by-step explanation:

This is a compound interest problem

Compound interest formula:

The compound interest formula is given by:

A: Amount of money(Balance)

P: Principal(Initial deposit)

r: interest rate(as a decimal value)

n: number of times that interest is compounded per unit t

t: time the money is invested or borrowed for

Here, we want our amount after 2 years to be $6,000, with interest rate at two percent and semi annually compounding. So:

A = 6,000

P = Present value, we have to find

r = 0.02

n = 2. Semi annually compounding means that the compounding happens twice a year.

t = 2.

So:

We have to set aside $5765.90 to earn what we want