Claire wants to buy a car when she graduates from North State University 5 years from now. She believes that she will need $29,500 to buy the car.

Calculate how much money Claire must put into her savings account today to have $29,500 in 5 years, assuming she can earn 14% compound semiannually. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58, 975.) ***Please show how to find the compounding rate. I can't figure how dividing it by 2 gets the right decimal number. Below is the table for reference

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Periods 4% 5% 6% 7% 8% 9% 1 2 0.9615 0.9524 0.9434 0.9346 0.9246 0.9070 0.8900 0.8734 3 0.8890 0.8638 0.8396 4 0.8163 0.8548 0.8227 0.7921 0.7629 5 10% 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8821 0.8475 0.8333 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7432 0.7182 0.8944 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6407 0.6086 0.5787 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5523 0.5158 0.4823 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 11% 12% 13% 14% 16% 18% 20% 0.5194 0.4761 0.4371 0.4019 Periods 4% 5% 6% 7% 8% 9% 1 2 0.9615 0.9524 0.9434 0.9346 0.9246 0.9070 0.8900 0.8734 3 0.8890 0.8638 0.8396 4 0.8163 0.8548 0.8227 0.7921 0.7629 5 10% 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8821 0.8475 0.8333 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7432 0.7182 0.8944 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6407 0.6086 0.5787 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5523 0.5158 0.4823 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 11% 12% 13% 14% 16% 18% 20% 0.5194 0.4761 0.4371 0.4019

Answer rating: 100% (QA)

Finding the SemiAnnual Interest Rate The interest rate is compounded semiannually meaning interest is earned twice a year The table shows annual inter... View the full answer