SOLUTION: Find how much money needs to be deposited now into a account to obtain $3900 and 12 years, if the interest rate is 5% per year compounded quarterly.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Find how much money needs to be deposited now into a account to obtain $3900 and 12 years, if the interest rate is 5% per year compounded quarterly.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1203922: Find how much money needs to be deposited now into a account to obtain $3900 and 12 years, if the interest rate is 5% per year compounded quarterly.
Answer by ikleyn(52799) About Me  (Show Source):
You can put this solution on YOUR website!
.

    3900 = X%2A%281%2B0.05%2F4%29%5E%284%2A12%29


      X  = 3900%2F%281%2B0.05%2F4%29%5E%2848%29 = 2,148.34  dollars.    ANSWER

Solved.

--------------------

For all details and explanations,  look into these two lessons
    - Compounded interest percentage problems
    - Problems on discretely compound accounts
in this site,  and learn the subject from there.

After reading these lessons,  you will tackle such problems on your own without asking for help from outside.