Question

HELP PLEASE WILL GIVE 30 POINTS !!!!!! Determine the amount you need to invest to have $22,000 dollars in 4 years if you invest at 5% annual interest, compounded quarterly. ADD WORK PLEASE

Answer 1

$18 034.42

Explanation:

The formula for the future value of an account paying 5 % annual interest compounded quarterly for four years is

`A = P(1 +(r )/(n ))^(nt)`

A = $22 000

r = 0.05

n = 4 times per year

t = 4 years

`22 000 = P(1 +(0.05 )/(4 ))^(4*4)`

`22 000 = P(1 + 0.0125)^(16)`

`22 000 = P(1.0125)^(16)`

22 000 = P x 1.220

P = 2 000/1.220

P = $18 034.42

You must invest $18 034.42.