A company will need $65,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 10% annual interest compounded quarterly. Find the amount that should be invested to total $65,000 in 8 years. The company should invest $ (Do not round until the final answer. Then round to the nearest dollar as needed)
A company will need $65,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 10% annual interest compounded quarterly. Find the amount that should be invested to total $65,000 in 8 years. The company should invest $ (Do not round until the final answer. Then round to the nearest dollar as needed)
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter5: Factoring Polynomials
Section: Chapter Questions
Problem 10MPS
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Transcribed Image Text:A company will need $65,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 10% annual interest
compounded quarterly. Find the amount that should be invested to total $65,000 in 8 years.
The company should invest $
(Do not round until the final answer. Then round to the nearest dollar as needed.)
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Expert Solution
Step 1
The formula for compound interest is given by where A is the amount, P is the principle, r is the rate of interest and n is the number of periods and t is the time in years.
The given Amount is A=$65,000 and rate of interest is r=10%=0.1.
The time period is t=8 years.
Since the interest is compounded quarterly, n=4.
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