Asked by James
How much should be deposited in an account paying 3.5% interest, compounded quarterly, in order to have a balance of $ 6,000after 17years and 3months?
Answers
Answered by
Henry
P = Po(1+r)^n = 6,000
r = (3.5/4)/100% = 0.00875 = Quarterly % rate expressed as a decimal.
n = (17yrs.*12mo/yr. + 3mo.)/3 = 69 Compounding periods.
Po(1.00875)^69 = 6000
1.824Po = 6000
Po = $3289.17
r = (3.5/4)/100% = 0.00875 = Quarterly % rate expressed as a decimal.
n = (17yrs.*12mo/yr. + 3mo.)/3 = 69 Compounding periods.
Po(1.00875)^69 = 6000
1.824Po = 6000
Po = $3289.17