solve for P in
P(1+.05/4)^(4*6) = 65000
A company will need 65,000 in 6 years to add an addition. to meet this goal the company deposits money in an account today that pays 5% annual intrest compoundded quarterly. Find the amount that should be invested to total 65,000 in 6 years.
the company should invest?
plz help . thank you sooo much .
3 answers
still lost can you explain step by step?
Looks like you need to review your compound interest formula.
$P invested at at a rate of r, compounded n times per year for t years grows to
P(1+r/n)^(nt)
So, knowing that
(1+.05/4)^(4*6) = 1.347, you now just have to solve
1.347P = 65000
$P invested at at a rate of r, compounded n times per year for t years grows to
P(1+r/n)^(nt)
So, knowing that
(1+.05/4)^(4*6) = 1.347, you now just have to solve
1.347P = 65000
1 answer