Barbara knows that she will need to buy a new car in 4 years. The car will cost $15,000 by then. How much should she invest now at 8%, compounded quarterly, so that she will have enough to buy a new car?

Question

Group of answer choices

$10,926.75

$11,907.48

$12,822.06

$10,208.75

Answer 1

a * [1 + (.08 / 4)]^(4 * 4) = 15000

log(a) + 16 log(1.02) = log(15000)

or ... a = 15000 / (1.02^16)