SOLUTION: Use the present value formula to determine the amount to be invested now or the present value when needed. the desired accumulated amount is $3500 after 10 yearsinvested in an acco

SOLUTION: Use the present value formula to determine the amount to be invested now or the present value when needed. the desired accumulated amount is $3500 after 10 yearsinvested in an acco

Algebra.Com

Question 1033135: Use the present value formula to determine the amount to be invested now or the present value when needed. the desired accumulated amount is $3500 after 10 yearsinvested in an account with 4% interest compounded quarterly.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
3500=P{1+(.04/4))^40, dividing the interest now by 4 and raising to the 4*10 power.
3500=P(1.01)^40=1.4889
without rounding, divide 3500 by 1.01^40=$2350.79
RELATED QUESTIONS
Use the present value formula to determine the amount to be invested now or the present... (answered by LinnW)

Use the present value formula to determine the amount to be invested now, or the present... (answered by robertb)

Using the present value formula to determine the amount to be invested now, or the... (answered by Theo)

The present value of a sum of money is the amount that must be invested now, at a given... (answered by ikleyn)

The present value of a sum of money is the amount that must be invested now, at a given... (answered by Theo)

Investment: The Dreyfus stocks have returned an average of 14.9% per year for the past... (answered by stanbon)

How do I salve this type of question: The present value of a sum of money is the amount (answered by ankor@dixie-net.com)

Find the principal needed now to get the given amount, that is, find the present value. (answered by mathmate)

Find the principal needed now to get the given amount, that is, find the present value. (answered by mathmate)