Question

Brandon is going to invest in an account paying an interest rate of 5% compounded quarterly. How much would Brandon need to invest, to the nearest dollar, for the value of the account to reach $490 in 16 years?​

Answer 1

Brandon wants $490 in 16 years by investing "x" dollars in an account that pays 5% compounded quarterly. How much is "x"?

Principal = Total / [ (1 + (r/n) )^ n * years]

n = 4 (for compounded quarterly)

Principal = 490 / [ (1. + (.05/4)) ^ 4 * 16]

Principal = 490 / [ (1.0125)^ 64]

Principal = 490 / 2.2145324106

Principal = 221.2656710971

So, if we invested 221.27 for 16 years at 5% compounded quarterly interest, we would have a total of $490.00

Explanation:

Answer 2

221

Explanation:

I just know