Final answer:
To find the present value that will grow to $20,000 if the interest is 9% compounded quarterly for 15 quarters, the present value is approximately $11,910.07.
Step-by-step explanation:
To find the present value that will grow to $20,000 if the interest is 9% compounded quarterly for 15 quarters, we can use the formula for compound interest. The formula is: Present Value = Future Value / (1 + Interest Rate)^n Where:
Future Value = $20,000 Interest Rate = 9% or 0.09 n = number of quarters = 15 Plugging in the values into the formula, we get: Present Value = $20,000 / (1 + 0.09/4)^15 Calculating it using a calculator or a computer program gives us the present value as approximately $11,910.07.