A company will need $45,000 in 7 years for a new addition. To meet this goal, the company deposits money in an account today that pays 5% annual interest compounded quarterly. Find the amount that should be invested to total $45,000 in 7 years.
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Wait, I think the example says there are 28 quarters in a year.
Yes, it's :D
Interest 5% annual is 1.25% each 3 months.
So, you'll have interest calculated 4 times a year during 7 years.
You'll got 1,4159923036192264747591121310131 times the money you deposited.
So you have to deposit 45000/1,4159923036192264747591121310131
31.779,84 (rounded up the last penny).
Nono, 28 quarters in 7 years, 4 quarters per year.