Question

Blake is going to invest in an account paying an interest rate of 1.5% compounded quarterly. How much would Blake need to invest to the nearest dollar, for the value of the account to reach $910 in 10 years

Answer 1

Answer: 783

Explanation:

Answer 2

$783.46

Explanation:

Compounded interest rate (quarterly) formula: A = P(1 + r/4)^4t

Simply plug in our known variables and solve:

910 = P(1 + 0.015/4)^4(10)

910 = P(1.00375)^40

910 = 1.16151P

P = 783.464