\(A=P(1+ \frac{r}{n})^{nt}\)
A=futurer amount
P=present amount
r=rate in decimal
n=number of times compounded per year
t=time in years
A=2500
r=0.05
n=2
t=2
\(2500=P(1+ \frac{0.05}{2})^{(2)(2)}\)
\(2500=P(1+ 0.025)^{4}\)
\(2500=P(1.025)^{4}\)
\(2500=P(1.025)^{4}\)
divide both sides by [tex} 1.025^{4} [/tex]
2264.88=P
he should invest
$2264.88
