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Jamie wants to have P45,000 in 2 years to buy a new computer, how much money should he invest today
in a fund that EARNS 5% compounded quarterly to get this amount after 2 years?
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Please pay attention on how I edited your post in order for IT would MAKE SENSE.
Also LEARN how to use the terms CORRECTLY in the area you write about . . .
Your starting equation is THIS
45000 = (1)
This equation has this form BECAUSE it is the formula for the future value of the quaterly compounded account.
You need to find the value of X, which is the today's amount to deposit in the fund.
To solve the equation, calculate this factor
= = use your calculator = 1.1045.
After that, from equation (1)
X = = 40742.42 dollars.
ANSWER. Jamie should invest $40742.42 today.
CHECK. = 44999.44 dollars. Close enough.
Solved.
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To see other similar solved problems, look into the lesson
- Problems on discretely compound accounts
in this site, and learn the subject from there.
After reading this lesson, you will tackle such problems on your own without asking for help from outside.
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Logarithms".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
Happy learning (!)