SOLUTION: How much money would you need to invest now (lump sum) at an interest rate of 3.4%, compounded quarterly, so that in 5 years you will have $5,000 to use for a down payment on a veh

SOLUTION: How much money would you need to invest now (lump sum) at an interest rate of 3.4%, compounded quarterly, so that in 5 years you will have $5,000 to use for a down payment on a veh

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Question 1073376: How much money would you need to invest now (lump sum) at an interest rate of 3.4%, compounded quarterly, so that in 5 years you will have $5,000 to use for a down payment on a vehicle?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
Let n be the amount to be invested. Then:
n(1+(.034/4))^20=5000
n=5000/(1+(.034/4))^20
n=$4221.35574985 to be invested now to have $5000 at the end of 5 years. ☺☺☺☺

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