Question

Approximately how much principal would need to be placed into an account earning 3.575% interest compounded quarterly so that it has an accumulated value of $68,000 at the end of 30 years? a. $23,706 b. $23,377 c. $52,069 d. $58,944 please select the best answer from the choices provided a b c d

Answer 1

Answer: Is (B) 23,377

Explanation:

Approximately how much principal would need to be placed into an account earning 3.575% interest compounded quarterly so that it has an accumulated value of $68,000 at the end of 30 years?

a.

$23,706

b.

$23,377

c.

$52,069

d.

$58,944

Please select the best answer from the choices provided

A

( B )

C

D

Answer 2

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\dotfill &\$68000\\ P=\textit{original amount deposited}\\ r=rate\to 3.575\%\to (3.575)/(100)\dotfill &0.03575\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &30 \end{cases}`

`68000=P\left(1+(0.03575)/(4)\right)^(4\cdot 30)\implies 68000=P(1.0089375)^(120) \\\\\\ \cfrac{68000}{1.0089375^(120)}=P\implies 23377\approx P`