Answer:
Amount paid today will be equal to $6165.163
Explanation:
We have given initial payment [tex]P=3900[/tex] $
Rate of interest r = 6.2%
Time is given 7 years and 6 months
As interest is given semiannually
So total time period = 2×7+1 = 15 period
Rate of interest [tex]r=\frac{6.2}{2}=3.1[/tex] %
Amount after 7 years 6 months will be equal to [tex]A=P(1+\frac{r}{100})^n[/tex]
[tex]A=3900(1+\frac{3.1}{100})^{15}=6165.163[/tex] $
So amount paid today will be equal to $6165.163
