Answer:
$ 10,234.80 should be invested.
Step-by-step explanation:
Since, the amount formula in compound interest,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where, P is the principal amount,
r is the annual rate,
n is the number of period in a year,
t is the number of years,
Here, A = $ 26,000, r = 12% = 0.12, t = 8 years,
n = 2 ( number of semiannual in a year = 2 ),
By substituting the values,
[tex]26000=P(1+\frac{0.12}{2})^{2\times 8}[/tex]
[tex]26000=P(1+0.06)^{16}[/tex]
[tex]\implies P=\frac{26000}{(1.06)^{16}}=10234.8033765\approx 10234.80[/tex]
Hence, $ 10,234.80 should be invested.
