Question
Solve the following word problem by using Table 11-2.
How much must be invested today at 16% compounded quarterly to have $7,000 in 4 years? Round your answer to the nearest cent.
How much must be invested today at 16% compounded quarterly to have $7,000 in 4 years? Round your answer to the nearest cent.
Answers
same thing
Let me know what you get
Let me know what you get
Po(1+r)^n = 7,000.
Po = amount inv. today.
r = 0.16/4 = 0.04 = quarterly % rate .
n = 4*4 = 16 compounding periods.
Po = amount inv. today.
r = 0.16/4 = 0.04 = quarterly % rate .
n = 4*4 = 16 compounding periods.