Question

Mrs. Stevens wants to have $18,000 in the bank in 3 years. If she deposits $9500 today at 4% compounded quarterly for 3 years, how much additional money will she need to add after three years to her investment to make her balance $18000? a. $8356.79 c. $7295.16 b. $0 d. $10,704.84

Answer 1

7,295.16

Explanation:

A=p(1+i/m)^mn

A=9,500×(1+0.04÷4)^(4×3)

A=10,704.84

The balance she needs

18,000−10,704.84

=7,295.16