Rico can invest money at 10%/a compounded quarterly. He would like

Question

$15 000 in 10 years. How much does he need to invest now?

Answer 1

PV = A( 1+i)^n
=15,000(1+0.025)^-40
=$5586.46

Answer 2

The balance gets multiplied bu 1.025 forty times.

X*(1.025)^40 = 15,000.
2.685063838X = 15,000.

X = $ 5586.46

Answer 3

You are wrong