The desired accumulated amount is 85000 after 11 years invested in an account with 7% interest compounded semiannually the amount to be invested now or the present value needed is

Use the compound amount formula:

A = P (1 + r/n)^(nt), where r is the interest rate as a decimal fraction, n is the number of compounding periods per year, t is the number of years and P is the principal.

Then A = $85000 = P*(1 + 0.07/2)^(2*11), or

            = $85000/ (1 + 0.035)^22   =    $39877.80

This is the amount to be invested to result in $85000 after 11 years.

step-by-step explanation: