SOLUTION: can someone help me with this problem please: Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated. $6600 a

Algebra ->  Equations -> SOLUTION: can someone help me with this problem please: Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated. $6600 a      Log On


   

Question 161712: can someone help me with this problem please:
Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
$6600 at 6% compounded quarterly for 4 years.
a. $5227.82
b. $8375.30
c. $5201.00
d. $1399.00
Answer by Edwin McCravy(20056) About Me  (Show Source):
You can put this solution on YOUR website!

A+=+P%2A%281%2Br%2Fn%29%5E%28n%2At%29

where A = final amount = 6600
      P = beginning amount (unknown)
      r = rate expressed as a decimal = 0.06
      n = number of compoundings per year = 4 (quarterly)
      t = number of years = 4

6600+=+P%2A%281%2B0.06%2F4%29%5E%284%2A4%29

6600+=+P%2A%281%2B0.015%29%5E%2816%29

6600+=+P%2A%281.015%29%5E%2816%29

6600+=+P%2A1.268985548

6600%2F1.268985548=P

5201.00486=P

So the nearest answed is c.

Edwin