SOLUTION: Suppose that you can invest your money at an annual interest rate of 8%, compounded quarterly. How much should you invest today so that it will be worth $8000 in 6 years?

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Question 1177636: Suppose that you can invest your money at an annual interest rate of 8%, compounded quarterly. How much should you invest today so that it will be worth $8000 in 6 years?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
8000=P(1+(.08)/4)^24, since the money will be compounded 24 times
P(1.02^24)=8000
P=8000/1.02^24=$4973.78