Answer :

The amount is $9,350 ,time in years: 4 and interest is 5 percent compounded semiannually.

Use the formula.

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Here n =2 .

Substitute the values,

[tex]9350=P(1+\frac{5}{100\times2})^{2\times4}[/tex][tex]9350=P(1+0.025)^8[/tex][tex]9350=P(1.025)^8[/tex][tex]P=\frac{9350}{1.2184}=7673.98\text{dollar}[/tex]

Hence the present value is 7673.98 dollar.

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