SOLUTION: can someone help me with this problem please:
Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
$6600 a
Question 161712: can someone help me with this problem please:
Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
$6600 at 6% compounded quarterly for 4 years.
a. $5227.82
b. $8375.30
c. $5201.00
d. $1399.00 Answer by Edwin McCravy(20055) (Show Source): You can put this solution on YOUR website!
where A = final amount = 6600
P = beginning amount (unknown)
r = rate expressed as a decimal = 0.06
n = number of compoundings per year = 4 (quarterly)
t = number of years = 4
So the nearest answed is c.
Edwin