Question 1190559
.
How much money should be invested at 5% compounded quarterly for
20 years so that you have P20,000 at the end of 20 years?
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            Use the formula for the future value of the discretely compounded account.



<pre>
        FV = {{{X*(1+0.05/4)^(4*20)}}},      (1)


where X is the unknown invested amount under the problem's question.


With the given value  FV = P20,000, the equation takes the form

    20000 = {{{X*(1+0.05/4)^(4*20)}}},     (2)


Calculate  {{{(1+0.05/4)^(4*20)}}} = 2.701485  and solve equation (2) for X

    X = {{{20000/2.701485}}} = 7403.3356.


Round it to the closest greater cent (centavo ?) to get the <U>ANSWER</U>  P7403.34.


<U>CHECK</U>.  FV = {{{7403.34*(1+0.05/4)^(4*20)}}} = 20,000.01.    ! Good enough !
</pre>

Solved.


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For all details and explanations, &nbsp;look into these two lessons

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> 

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/logarithm/Problems-on-discretely-compound-accounts.lesson>Problems on discretely compound accounts</A> 

in this site, &nbsp;and learn the subject from there.



After reading these lessons, &nbsp;you will tackle such problems on your own without asking for help from outside.


Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.


The referred lessons are the part of this online textbook under the topic "<U>Logarithms</U>".



Save the link to this online textbook together with its description


Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson


to your archive and use it when it is needed.