Simmons Montgomery
05/05/2024 · Junior High School

\( 1 \leftarrow \) You want to receive \( \$ 400 \) at the end of every six months for 5 years. Interest is \( 5.4 \% \) compounded semi-annually. (a) How much would you have to deposit at the beginning of the 5 -year period? (b) How much of what you receive will be interest? (a) The deposit is \( \$ 505.91 \). (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed

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**Part (a):** You need to deposit **\$3,493.60** at the beginning of the 5-year period. **Part (b):** A total of **\$506.40** of what you receive will be interest.

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