Tracy should deposit 1,369.86 to earn 3,000 in 5 years at 4% interest rate compounded 4 times a year
Given:
Compounded Interest = 3000
Term = 5 year
Frequency = 4 times a year
interest rate = 4%
Principal = unknown.
C.I = Principal × (1 + rate)^t
3000 = Principal × (1.04⁴)⁵
3000 = Principal × 1.17⁵
3000 = Principal x 2.19
3000/2.19 = Principal
1,369.86 = Principal