SOLUTION: A company will need $60,000.00 in 5 years for a new addition. To meet this goal, the company deposits money in an account today that pays 3% annual interest compounded quarterly. F
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Question 463691: A company will need $60,000.00 in 5 years for a new addition. To meet this goal, the company deposits money in an account today that pays 3% annual interest compounded quarterly. Find the amount that should be invested to total $60,000.00 in 5 years
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
From the formula for future value,
, and substituting the respective values,
, or ,
or , we get
P = 51,671.39.
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