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19 August, 09:49

Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $130,000 7-years from now. How much must Carol deposit to accomplish her goal?

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  1. 19 August, 11:13
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    the formula for compound interest future value is S=P * ((1+i) exp n) - 1/i) expt

    Explanation:

    The answer is $6,186

    130000=X * ((1+0.06) exp 14) - 1/0.06)

    X = 6,186
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