Answer:
The answer is $48317.14.
Step-by-step explanation:
Payment or pmt = 5000
rate = 7% compounded semiannually
n = [tex]6\times2=12[/tex]
We have to find p
The formula is :
[tex]p=pmt[\frac{1-\frac{1}{(1+r)^{n}}}{r}][/tex]
r = [tex]\frac{7}{2(100)} =0.035[/tex]
Substituting the values we get;
[tex]p=5000[\frac{1-\frac{1}{(1+0.035)^{12}}}{0.035}][/tex]
=> [tex]p=5000[\frac{1-\frac{1}{(1.035)^{12}}}{0.035}][/tex]
=> [tex]p=5000[\frac{1-0.66178}{0.035}][/tex]
=> [tex]p=5000[\frac{0.33822}{0.035}][/tex]
= $48317.14
The answer is $48317.14.
