Question

Blake is going to invest in an account paying an interest rate of 1.9% compounded quarterly. How much would Blake need to invest, to the nearest dollar, for the value of the account to reach $72,000 in 13 years?

Answer 1

Hi there

The formula to find the present value is
P=A÷(1+r/k)^(kt)
P present value?
A future value 72000
r interest rate 0.019
k compounded quarterly 4
T time 13 years

P=72,000÷(1+0.019÷4)^(4×13)
P=56,275.03

Hope it helps