SOLUTION: How much money must be deposited now in an account paying 7.25% annual interest, compounded quarterly, to have a balance of $1000 after 10 years?

Question 1158425: How much money must be deposited now in an account paying 7.25% annual interest, compounded quarterly, to have a balance of $1000 after 10 years?
Answer by Shin123(626) (Show Source): You can put this solution on YOUR website!
Let P be the amount you invest now.
. .
. . Check:

Solved by pluggable solver: Finance: Calculate the Future Value of Money

If P is the principal. r the interest rate in decimal, n the number of times it is compounded per year, and y the number of years that the money is kept, the future value is . Plugging in the numbers, we get . Simplifying, we get ,which can be rounded to dollars.

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