Question 766671: a company will need $35,000 in 7 years for a new addition. To meet this goal, the company deposits money in an account that pays 5% annual interest compounded quarterly. Find the amount that should be invested to total $35,000 in 7 years.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! a company will need $35,000 in 7 years for a new addition. To meet this goal, the company deposits money in an account that pays 5% annual interest compounded quarterly. Find the amount that should be invested to total $35,000 in 7 years.
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A(t) = P(1+(r/n))^(nt)
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35000 = P(1+(0.05/4))^(4*7)
35000 = P(1.4160)
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P = $24,717.65
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Cheers,
Stan H.
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