Question

Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $130,000 7-years from now. How much must Carol deposit to accomplish her goal?

Answer 1

Answer:

the formula for compound interest future value is S=P*((1+i)exp n)-1/i)expt

Explanation:

The answer is $6,186

130000=X*((1+0.06)exp 14)-1/0.06)

X= 6,186