document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1058422>Question 1058422</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much money should be invested at 5% interest, compounded quarterly, so that 12 years later the investment will be worth $5000? This amount is called the present value of $5000 at 5% interest. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #673474 by </B><A HREF=/tutors/aboutme.mpl?userid=solve_for_x><B>solve_for_x(190)</B></A><img src=\"/images/stars/stars-09.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solve_for_x><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=673474\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Using the equation:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=FV+=+PV%281+%2B+r%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"FV+=+PV%281+%2B+r%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "where FV is the future value, PV is the present value, r is the annual interest rate, n is the <BR>\n" );
document.write( "number of periods per year, and t is the number of years.\r<BR>\n" );
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document.write( "Rearranging the equation gives:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=PV+=+FV+%2F+%281+%2B+r%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"PV+=+FV+%2F+%281+%2B+r%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Substituting the given values gives:\r<BR>\n" );
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document.write( "PV = ($5000)/(1 + 0.05/4)^(4*12)\r<BR>\n" );
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document.write( "PV = ($5000)/(1.0125)^48\r<BR>\n" );
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document.write( "PV = $5000/1.8154\r<BR>\n" );
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document.write( "PV = $2,754.28 </SPAN>\n" );
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