P = Po*(1+r)^n.
P = $55,000.
r = 5%/4/100% = 0.0125.
n = 7yrs. * 4Comp./yr. = 28 Compounding
periods.
Solve for Po.
a company needs $55,000 in 7 years for a new addition. To meet this goal, the company needs to deposit money in an acct today that pays 5% annual interest compounded quarterly. What amount should the company invest to total $55,000 in 7 years?
Thanks!
1 answer
1 answer