anonymous
  • anonymous
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.
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
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anonymous
  • anonymous
Quaterly is once each 3 months?
anonymous
  • anonymous
That's what I can't figure out. ;/

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anonymous
  • anonymous
Wait, I think the example says there are 28 quarters in a year.
anonymous
  • anonymous
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).
anonymous
  • anonymous
Nono, 28 quarters in 7 years, 4 quarters per year.
anonymous
  • anonymous
Oops. Ok.
anonymous
  • anonymous
What would be the amount invested?
anonymous
  • anonymous
31.779.84$
anonymous
  • anonymous
Thank you! ;D

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