Asked by Michelle
A company will need 55,000 for a new addition. To meet this goal the company deposits money in an account today that pays 5% interest annual compound quarterly. to meet this goal in five years what would the company need to deposit today?
Answers
Answered by
Damon
5 years = 20 quarters at .05/4 = .0125 per quarter
1.0125^20 = 1.282037232
so
55,000/1.282037232 = $ 42,900.47
1.0125^20 = 1.282037232
so
55,000/1.282037232 = $ 42,900.47
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