SOLUTION: A company will need $75,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 5% annual interest compounded quarterly. Fi

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Question 609164: A company will need $75,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 5% annual interest compounded quarterly. Find the amount that should be invested to total $75,000 in 8 years
Found 2 solutions by ewatrrr, MathTherapy:
Answer by ewatrrr(24785) (Show Source):
You can put this solution on YOUR website!

Hi
5% annual interest compounded quarterly.
In General
A = Accumulated Amount = 75,000
P= principal = P
r= annual rate = .05
n= periods per year = 4
t= years = 8

= $1730.54

Answer by MathTherapy(10553) (Show Source):
You can put this solution on YOUR website!
A company will need $75,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 5% annual interest compounded quarterly. Find the amount that should be invested to total $75,000 in 8 years

P = , where P = present value; A = future value ($75,000); i or interest (5%, or .05), m = compounding periods per year (4); and t (term, in years) = 8

P =

P =

P =

P =

P, or present value, or amount to de deposited today to total $75,000 in 8 years = $

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