SOLUTION: Jamie wants to have P45,000 in 2 years to buy a new computer, how much money should he invest today in a fund that invests 5% compounded quarterly to get this amount after 2 years
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-> SOLUTION: Jamie wants to have P45,000 in 2 years to buy a new computer, how much money should he invest today in a fund that invests 5% compounded quarterly to get this amount after 2 years
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Question 1173006: Jamie wants to have P45,000 in 2 years to buy a new computer, how much money should he invest today in a fund that invests 5% compounded quarterly to get this amount after 2 years? Answer by ikleyn(52776) (Show Source):
You can put this solution on YOUR website! .
Jamie wants to have P45,000 in 2 years to buy a new computer, how much money should he invest today
in a fund that EARNS 5% compounded quarterly to get this amount after 2 years?
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Please pay attention on how I edited your post in order for IT would MAKE SENSE.
Also LEARN how to use the terms CORRECTLY in the area you write about . . .
Your starting equation is THIS
45000 = (1)
This equation has this form BECAUSE it is the formula for the future value of the quaterly compounded account.
You need to find the value of X, which is the today's amount to deposit in the fund.
To solve the equation, calculate this factor
= = use your calculator = 1.1045.
After that, from equation (1)
X = = 40742.42 dollars.
ANSWER. Jamie should invest $40742.42 today.
CHECK. = 44999.44 dollars. Close enough.
