Question 1195542
.
How much would you need to deposit in an account now in order to have 
$4000 in the account in 10 years? Assume the account earns 6% interest compounded quarterly. 
Round your answer to the nearest cent.
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<pre>
Use the future value formula for a quarterly compounded account

    Future Value = {{{A*(1+0.06/4)^n}}}

where A is the initial deposit and n is the number of quarters.



Therefore, our equation to find  " A "  is


    4000 = {{{A*(1+0.015)^40}}}.


It gives

    A = {{{4000/1.015^40}}} = 2205  dollars.


<U>ANSWER</U>. The necessary deposit is $2205.
</pre>

Solved.


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To see many other similar &nbsp;(and different) &nbsp;solved problems, &nbsp;look into the lesson

&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, and learn the subject from there.



After reading this lesson, 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 lesson is 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.



Happy learning (!)