SOLUTION: How much would you need to deposit in an account now in order to have $4000 in the account in 10 years? Assume the account earns 6% interest compounded quarterly. Round your answer
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Question 1195542: How much would you need to deposit in an account now in order to have $4000 in the account in 10 years? Assume the account earns 6% interest compounded quarterly. Round your answer to the nearest cent.
You can put this solution on YOUR website! .
How much would you need to deposit in an account now in order to have
$4000 in the account in 10 years? Assume the account earns 6% interest compounded quarterly.
Round your answer to the nearest cent.
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Use the future value formula for a quarterly compounded account
Future Value =
where A is the initial deposit and n is the number of quarters.
Therefore, our equation to find " A " is
4000 = .
It gives
A = = 2205 dollars.
ANSWER. The necessary deposit is $2205.
Solved.
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To see many other similar (and different) solved problems, look into the lesson
- Problems on discretely compound accounts
in this site, and learn the subject from there.
After reading this lesson, you will tackle such problems on your own without asking for help from outside.
