Paul Havlik promised his grandson Jamie that he would give him $7,100 7 years from today for graduating from high school. Assume money is worth 8% interest compounded semiannually.

What is the present value of this $7,100? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Present value $

Step-by-step explanation:

The formula for the future value (FV) of an investment earning compound interest is

where

PV = the present value (PV) of the money invested

  r = the annual interest rate expressed as a decimal fraction

  t = the time in years

 n = the number of compounding periods per year

Data:

FV = $7100

  r =  8 % = 0.08

  t = 7 yr

 n = 2

Calculation:

the answer is 0.3175 hope that you ^w^

also you might actually want to put this picture up if you want people to solve it luckily i remember this question