Question

Nina will need $23,500 in 6 years for a new car. How much should she invest now at 7.8% annual interest, compounded quarterly, to reach her goal?

$2,962.94
$14,783.40
$3916.67
$5,875.00

Answer 1

$5, 875.00

Explanation:

quarterly a year is 3 months

12 months in a year divided by 3 = 4

$5, 875.00 x 4 = $23, 500