SOLUTION: how much money a student have to deposit today at an account that pays 6% compound quarterly in order that after 10 years she will have in her account 4000

Question 612927: how much money a student have to deposit today at an account that pays 6% compound quarterly in order that after 10 years she will have in her account 4000
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Start with the compound interest formula

Plug in , (the decimal equivalent of 6%), and .

Evaluate to get

Add to to get

Multiply and to get .

Evaluate to get .

Divide both sides by to isolate "P".

Rearrange the equation.

Divide.

Round to the nearest hundredth (ie to the nearest penny).

So she should deposit 2205.05 dollars into the account.

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