Solution:
Amount needed (P): $9,350
Time in years (n): 3
Interest (r): 5%
Compounded: semiannually
To find the Amount (A).
we have the formula A, we get,
[tex]A=P(1+\frac{\frac{r}{2}}{100})^{2n}[/tex][tex]=9350(1+\frac{2.5}{100})^{2(3)}[/tex][tex]=9350(\frac{102.5}{100})^6[/tex][tex]=9350(1.025)^6[/tex][tex]=9350(1.15969)[/tex][tex]A=10,843.13[/tex]The present value is $10,843.133
