Question 1169541
Jennifer wants to take a trip to Europe when she graduates from high school in 3 years.
 After doing some research, Jennifer has found that she can place her money in an investment with an interest rate of 4.8%/a, compounded quarterly.
 How much money must Jennifer put into investment now if she required $4000 to take her trip?
:
The compound interest formula: {{{A = Ao(1+(r/n))^(t*n)}}} where
A = Amt after t yrs
Ao = initial amt
r = interest rate in decimal form
n = compounding period per year
t = no. of years
:
{{{Ao(1+(.048/4))^(3*4) = 4000}}}
{{{Ao(1.012)^12 = 4000}}}
use you calc to find 1.012 to the 12th
Ao * 1.1539 = 4000
Ao = {{{4000/1.1539}}}
Ao = $3,466.50 has to be in invested to have 4k in 3 years