SOLUTION: How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume the account earns 6% interest compounded quarterly. Round your answer
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Question 1180042: How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume the account earns 6% interest compounded quarterly. Round your answer to the nearest cent. Answer by ikleyn(52876) (Show Source):
You can put this solution on YOUR website! .
How much would you need to deposit in an account now in order to have $6000 in the account in 15 years?
Assume the account earns 6% interest compounded quarterly. Round your answer to the nearest cent.
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Formula for discretely compounded account is f =
where f is the future value
P is the principal value (one-time original deposit)
r is the interest rate per time period (per quarter, in this case)
n is the number of time periods (quarters, in this case)
Your time periods are quarters.
f = 6000 dollars.
P is unknown value under the question.
r = 0.06/4 in decimal form.
n = 15 years * 4 quarters = 60 quarters (time periods).
Formula becomes 6000 = .
From the formula, the required investment is P = = 2455.78 dollars. ANSWER
