Answer:
She will invest approximately $3,383.97
Explanation:
Formula for compound interest:
A = P(1 + r/n)^nt
Where: A = Final amount
P = Principal amount
r = Interest rate
n = Number of compounding periods per year
t = Time period in years.
A = $8,000
P = Unknown
r = 7.30 percent = 7.3% = 0.073
n = semi annually = 2
t = 12 years
8,000 = P(1 + 0.073/2)^2(12)
8,000 = P(1 + 0.0365)^24
8,000 = P(1.0365)^24
8,000 = 2.364086453P
Divide both sides by the coefficient of P
8,000/2.364086453 = 2.364086453P/2.364086453
3,383.971001 = P
P ≈ $3,383.97
That is Elizabeth Brown will invest approximately $3,383.97 to achieve her goal
