Answer:
She have to invest $7,387 today to achieve goal
Explanation:
Future value is the accumulated value of principal and compounding interest after some period of investment.
Target Future value = A = $14,500
Number of year = 12 years
Yearling compounding = 2 time a year
Total compounding = n = 12 x 2 = 24 compounding periods
Interest rate = r = 5.7% yearly = 5.7% / 2 = 2.85% semiannually
A = P ( 1 + r )^n
$14,500 = P ( 1 + 2.85% )^24
$14,500 = P x 1.963
P = $14,500 / 1.963
P = 7,386.65
P = 7,387
