Answer:
Step-by-step explanation:
Given that Jordan wants 6000 dollars after 3 years for making a family trip.
We have to find out the amount invested now to get the required 6000 dollars
We have interest of 8% compounded semi annually.
equivalent rate = [tex]\frac{8}{200} =0.04[/tex]
If P is the amount invested now, then
[tex]P(1+0.04)^{3*2} =6000\\P =6000(1.04)^{-6} \\P=4741.89[/tex]
He has to invest 4741.89 dollars now
