How much money should be deposited today in an account that earns 6% compounded semiannually so that it will accumulate to $14,000 in three years?

The amount of money to be deposited today is $11,725

Step-by-step explanation:

In this question , we are concerned with calculating the amount of money that should be deposited presently to have $14,000 in three years.

To get this, we have to use the compound interest formula

A = P( 1+ r/n)^nt

where A is the amount to be earned after the end of the compounding period which is $14,000 according to this question

P is the initial amount to be deposited which is what we are looking for

r is the rate of compounding which is 6% or simply 6/100 = 0.06

n is the number of times interest is compounded yearly which is semiannually according to the question and this means 2

t is the number of years which is 3 according to the question

Now, plugging all these values, we have;

14,000 = P( 1 + 0.06/2)^(3 * 2)

14,000 = P(1+0.03)^6

14,000 = P(1.03)^6

14,000 = 1.194P

P = 14,000/1.194

P = 11,724.77 which is approximately $11,725

answer:

it is general formula that is used to write value to its excet position

a11 a12 a13

a21 a22 a23

it is the example of order 2 by 3 matrix in this

a11 means value occur in 1 st row 1st column

a12 means value occurs in 1st row 2nd column

a13 means value occur in 1st row and 3rd column

a21 means value occurs in 2nd row and 1st column

a22 means value occurs in 2nd row and in 2nd column

a23 means value occurs in 2nd row and in 3rd column