document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=972378>Question 972378</A>: <I><SPAN STYLE=\"word-break: break-all;\"> find the amount that should be invested now to accumulate $7,100.00 at 6.5% compounded quarterly for 12 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #594712 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=594712\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> find the amount that should be invested now to accumulate $7,100.00 at 6.5% compounded quarterly for 12 years.<BR>\n" );
document.write( "***<BR>\n" );
document.write( "Compound interest formula: A=P(1+r/n)^nt, P=initial investment, r=interest rate, n=number of compounding periods per year,  t=years, A=amt after t-years<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=?<BR>\n" );
document.write( "r=.065<BR>\n" );
document.write( "n=4<BR>\n" );
document.write( "t=12<BR>\n" );
document.write( "A=7100<BR>\n" );
document.write( "..<BR>\n" );
document.write( "7100=P(1+.065/4)^4*12=P(1+.01625)^48=P(1.01625)^48<BR>\n" );
document.write( "P=7100/(1.01625)^48<BR>\n" );
document.write( "P=3275.15<BR>\n" );
document.write( "Amount that should be invested now=$3,275 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );