SOLUTION: Jorge Rodriguez would like to pay off his condo when he retires. How much must he invest now at 2.3% interest compounded quarterly to have $125,000 in 11 years? Round to the near

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Question 942665: Jorge Rodriguez would like to pay off his condo when he retires. How much must he invest
now at 2.3% interest compounded quarterly to have $125,000 in 11 years? Round to the nearest
whole dollar.
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
Jorge Rodriguez would like to pay off his condo when he retires. How much must he invest now at 2.3% interest compounded quarterly to have $125,000 in 11 years? Round to the nearest whole dollar.
***
compound interest formula: A=P%281%2Br%2Fn%29%5Ent, P=initial investment, r=interest rate, n=number of compounding periods per year,A=amount after t-years
..
For given problem:
P=(to be determined)
r=.023
n=4
t=11
A=$125,000
..
125000=P%281%2B.023%2F4%29%5E%284%2A11%29
125000=P(1+.00575)^44
P=125000/(1.00575)^44
P=$97,129
How much must he invest now? $97,129