Answer:
$7,621.72
Explanation:
The equation that describes the future value (FV) of an investment (P) at an interest rate (r) for a period of n years, compounded semi-annually is:
[tex]FV = P*(1+\frac{r}{2})^{2n}[/tex]
The amount required to yield $8,250 after 2 years at a rate of 4% per year is:
[tex]8,250 = P*(1+\frac{0.04}{2})^{2*2} \\P=\$7,621.72[/tex]
