SOLUTION: What principal should be invested today to have $3000 after two years, if the interest is paid at 6% per year, compounded quarterly? Show your work using a formula

Question 1199834: What principal should be invested today to have $3000 after two years, if the interest is paid at 6% per year, compounded quarterly? Show your work using a formula
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
f = p * (1+r) ^ n
f is th future value
p is the presnt value
r is the growth rate
1+r is the growth factor
in this problem, the formula becomes:
3000 = p * (1 + .06/4) ^ (4 * 2) which becomes:
3000 = p * 1.015 ^ 8
dolve for p to get:
p = 3000 / (1.015 ^ 8) = 2663.133371.
confirm by replace p with that in the original equation and solving for f to get;
f = 2663.133371 * 1.015 ^ 8 = 3000.
this confirms the value of p is correct.

RELATED QUESTIONS
A principal of $3000 is invested at 6% interest, compounded annually. How much will the... (answered by rfer)

Compound interest. if $1000 is invested at a rate of 7% per year compounded monthly what... (answered by richwmiller)

Find the accumulated amount A if the principal P = $2,000 is invested at the interest... (answered by lynnlo)

what principal will amount to $3000 if invested at 3% interest compounded semi annually... (answered by josgarithmetic,MathTherapy)

What is the accumulated amount A if the principal P = $11,000 is invested at the interest (answered by ewatrrr)

If $33000 is invested at an interest rate of 6 percent per year, compounded... (answered by rfer)

If $8500 is invested at a rate of 6% per year compounded daily, what is the balance after (answered by nerdybill)

Suppose $500 is invested at a rate of 11% per year compounded monthly. (Round your... (answered by ikleyn)