SOLUTION: how much money must be deposited now in an account paying 8% annual interest, compounded quarterly, to have a balance of $1000 after 10 years

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Question 709524: how much money must be deposited now in an account paying 8% annual interest, compounded quarterly, to have a balance of $1000 after 10 years
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
how much money must be deposited now in an account paying 8% annual interest, compounded quarterly, to have a balance of $1000 after 10 years
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8% annual = 2% per quarter
10 yrs = 40 1/4's
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FV = PV*1.02^n
1000 = PV*1.02^40
PV = 1000/(1.02^40)
PV =~ $452.89