Answer:
The amount of money which should be deposited is $ 7316.627
Step-by-step explanation:
Given as :
Let the principal = p
The interest rate compounded semiannually = 3 %
Time period = 3 years
The amount after three years = A = $ 8000
Now, Amount = Principal × [tex](1 +\frac{Rate}{2\times 100})^{2\times Time}[/tex]
Or, $ 8000 = Principal × [tex](1 +\frac{3}{2\times 100})^{2\times 3}[/tex]
Or, $ 8000 = p × [tex](\frac{203}{200})^{6}[/tex]
Or, p = [tex]\frac{8000}{1.0934}[/tex]
∴ p = $ 7316.627
Hence The amount of money which should be deposited is $ 7316.627 Answer
