Question

Student needs $1,000 in 4 years what mushy invest today if her investment earns 4% annual interest compounded quarterly

Answer 1

`\bf \qquad \qquad \textit{Future Value of an ordinary annuity} \\\\ A=pymnt\left[ \cfrac{\left( 1+(r)/(n) \right)^(nt)-1}{(r)/(n)} \right]`


`\bf \qquad \begin{cases} A= \begin{array}{llll} \textit{ amount}\\ \textit{already compounded} \end{array}\to & \begin{array}{llll} 1000 \end{array}\\ pymnt=\textit{periodic payments}\to &p\\ r=rate\to 4\%\to (4)/(100)\to &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, means 4 times} \end{array}\to &4\\ t=years\to &4 \end{cases}`

solve for "pymnt"