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How much must you deposit in an account today so that you have a balance of $ 23,408 at the end of 11 years if interest on the account is 12 % p.a., but with quarterly compounding?
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How much must you deposit in an account today so that you have a balance of $ 23,408 at the end of 11 years if interest on the account is 12 % p.a., but with quarterly compounding?

User Dmpop
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1 Answer

19 votes
19 votes

Answer:

$6375.68

Step-by-step explanation:

Then, solve the equation for P

P = A / (1 + r/n)nt

P = 23,408.00 / (1 + 0.12/4)(4)(11)

P = 23,408.00 / (1 + 0.03)(44)

P = $6,375.68

User Mahorad
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