SOLUTION: You want to have $3000 in your savings account after 3 years. Find the amount you should deposit for each of the situations described below.
a. The account pays 2.25% annual inte
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a. The account pays 2.25% annual inte
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Question 827395: You want to have $3000 in your savings account after 3 years. Find the amount you should deposit for each of the situations described below.
a. The account pays 2.25% annual interest compounded quarterly.
b. The account pays 3.5% annual interest compounded monthly.
c. The account pays 4% annual interest compounded yearly.
This question really stumps me... could you also show me how its done? Answer by rfer(16322) (Show Source):
You can put this solution on YOUR website! FV=P(1+r/c)^t
t=compounding periods per yr time the number of years.
c=compounding periods per yr.
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3000=P(1+0.0225/4)^3*4
3000=P(1.005625)^12
3000=P(1.069627937)
3000/1.069627937=P
2979.26=P
you do the others
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