2 15 16 17 13 49 20 This Question 1 pt This T 15 of 24 comp

2 ® 15 16 17 13 49 20 This Question: 1 pt This T 15 of 24 complete 24 pts Dewey Sykes plans to open a business in eight years when he retires. How much must he invest today to have $5,000 when he retires if the bank pays 5% annually, compounded semiannually? Present Value of $1.00 Click the icon to view the present value of $1.00 table Rate per period Dewey Sykes must invest I. Round to the nearest cent Periods. 0.5 1% 1.5% 2.5 100% 12% 0.99502 0.99010 0.98522 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.92593 0.90909 0.89286 0.99007 0.98030 0.97066 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.85734 0.82645 0.79719 3 0.98515 0.97059 0.95632 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.7938 0.75 0 71178 4 0.98025 0.96098 0.94218 0.92385 0.90595 0 88849 0.85480 0.82270 0.79209 0.73503 0.68301 0.63552 5 0.97537 0.95147 0.92826 0.90573 0.88385 0.86261 0.82193 0.78353 0.74726 0.68058 0.62092 0.56743 6 0.97052 0.94205 0.91454 0.88797 0.86230 0.83748 0.7903 0.74622 0.70496 0.63017 0.56447 0.50663 7 0.96569 0.93272 0.90103 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.58349 0.51316 0.45235 0.96089 0.92348 88771 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.54027 0.46651 0.40388 9 0.95610 0.91434 0.87459 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.50025 0.42410 0.36061 100 0.95135 0.90529 0.86167 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.46319 0.38554 0.32197 11 0.94661 0.89632 0.84893 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.42888 0.35049 0.28748 0.94191 0.88745 0.83639 0.78849 0.74356 0.70138 0.62460 0.55684 7 0.39711 0.3 1863 0.25668 13 0.93722 0.87866 0.82403 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.36770 0.28966 0.22917 14 0.93256 0.86996 0.81185 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.34046 0.26333 0.20462 15 0.92792 0.86135 0.79985 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.31524 0.23939 0.18270 16 0.92330 0.85282 0.78803 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.29189 0.21763 0.16312 17 0.91871 0.84438 0.77639 0.71416 0.65 720 0.60502 0.51337 0.43630 0.37136 0.27027 0.19784 0.14564 18 0.91414 0.83602 0.76491 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.25025 0.17986 0.13004 19 0.90959 0.82774 0.75361 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.23171 0.16351 0.11611 Enter your answer in the answer box 20 0.90506 0.81954 0.74247 0.67297 0.61027 0.55368 0.45639 0.37689 0.3 1180 0.21455 0.14864 0.10367 culator

Solution

1)

Future value = P×(1+r)^n

P is payment

r is interest rate per period

n is number of periods

$5,000 = P×(1+(5%÷12))^(8×12)

Investment, P = $3,354.39