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Nevaeh is going to invest in an account paying an interest rate of 4.6% compounded quarterly. How much would Nevaeh need to invest, to the nearest cent, for the value of the account to reach $125,000 in
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Nevaeh is going to invest in an account paying an interest rate of 4.6%

compounded quarterly. How much would Nevaeh need to invest, to the
nearest cent, for the value of the account to reach $125,000 in 9 years?

User Rekle
by
5.0k points

2 Answers

2 votes

Answer:

$24,761.07

Explanation:

User Andreas Prang
by
4.2k points
0 votes
$24,761.07

This is because we do $125000/1.046^36
As the interest rate 4.6% added to the original 100% is 104.6% or 1.046
The power is 36 as it is compounded 36 times as 9 years, 4 times a year
User Pearman
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