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?
Answers
Damon
.03575/4 = .0089375 per quarter year
30 * 4 = 120 compoundings
V = Vi (1.0089375)^120
68,000 = Vi (2.90878 )
Vi = 23,377.45
30 * 4 = 120 compoundings
V = Vi (1.0089375)^120
68,000 = Vi (2.90878 )
Vi = 23,377.45