Calculate the amount that an investor needs to be invest to earn $1005 in interest in 12 months if the investor plans to invest x dollars in a savings account that pays interest at an annual rate of 11% compounded semi-annually?  Choose one
A) 8000  B) 8100  C) 8900  D) 8600  E) 8400
the approach is substitution,   our interest requirement is $1005 after 12 months, 2 compounding period.   calculate the compound interest on each option and find out the one that yields 460 in 12 months   8900 yielded $1005   using the formula   A = P(1 + r/n)nt   hence answer is 8900
<result>C</result>
Calculate the amount that an investor needs to be invest to earn $1005 in interest in 12 months if the investor plans to invest x dollars in a savings account that pays interest at an annual rate of 11% compounded semi-annually?