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anonymous

  • 4 years ago

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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  1. anonymous
    • 4 years ago
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  2. anonymous
    • 4 years ago
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    Quaterly is once each 3 months?

  3. anonymous
    • 4 years ago
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    That's what I can't figure out. ;/

  4. anonymous
    • 4 years ago
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    Wait, I think the example says there are 28 quarters in a year.

  5. anonymous
    • 4 years ago
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    Yes, it's :D So... Interest 5% annual is 1.25% each 3 months. So, you'll have interest calculated 4 times a year during 7 years. So: (1+0.0125)^28=1,4159923036192264747591121310131 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).

  6. anonymous
    • 4 years ago
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    Nono, 28 quarters in 7 years, 4 quarters per year.

  7. anonymous
    • 4 years ago
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    Oops. Ok.

  8. anonymous
    • 4 years ago
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    What would be the amount invested?

  9. anonymous
    • 4 years ago
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    31.779.84$

  10. anonymous
    • 4 years ago
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    Thank you! ;D

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