Compound Interest

Question

A woman buys an investment that pays 4% compounded semiannually. She wants $55,000 when she retires in 20 years. How much should she invest? (See Example 7. Find the present value.) (Round your final answer to two decimal places.)

Answer 1

apparently yu wanna put up a fist-full av $ & let it gro from kompounded interest

20 yeers, at 4%, semiyeer kompound, want=55,000$

gro rate=(1.02)^40=2.2080397

thus, start $=55000/2.2080397

=24,909$