Answer:
[tex]\$7,878.21[/tex]
Step-by-step explanation:
The question is
What is the amount of money to be invested now?
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=10\ years\\ A=\$19,000\\ r=9\%=9/100=0.09\\n=2[/tex]
substitute in the formula above
[tex]19,000=P(1+\frac{0.09}{2})^{2*10}[/tex]
solve for P
[tex]19,000=P(1.045)^{20}[/tex]
[tex]P=19,000/(1.045)^{20}[/tex]
[tex]P=\$7,878.21[/tex]
