Question

Find the present value that will grow to $22000 if interest is 6% compounded quarterly for 14 quarters

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$22000\\ r=rate\to 6\%\to (6)/(100)\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus } \end{array}\to &4\\ t= \begin{array}{llll} \textit{how many years}\\ \textit{14 quarters is 3years and}\\ \textit{6 months} \end{array}\to &(7)/(2) \end{cases}`


`\bf A=22000\left(1+(0.06)/(4)\right)^{4\cdot (7)/(2)}`