anonymous
  • anonymous
A company will need $35,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account today that pays 6% annual interest compounded quarterly. Find the amount that should be invested to total $35,000 in 8 years. I know the formula is A=P(1+.06/4)^8 A=35000(1+.015)^8 A=35000(1.015)^8 A=35000(1.1264925866) A=39427 (rounded to nearest dollar) Is this correct?
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
jamiebookeater
  • jamiebookeater
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
Mertsj
  • Mertsj
The formula is: \[A=P(1+\frac{r}{n})^{nt}\]
anonymous
  • anonymous
That's what I did I thought A=35000(1+6%/4)^8(years)
anonymous
  • anonymous
the 6%/4(quarterly)

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

Mertsj
  • Mertsj
What is n?
anonymous
  • anonymous
yeah
Mertsj
  • Mertsj
yeah is not a valid replacement for n
anonymous
  • anonymous
the rate being 6% annually and the n being quarterly for 4 quarters in a year
Mertsj
  • Mertsj
Are you saying that n is 4?
anonymous
  • anonymous
yes
Mertsj
  • Mertsj
Then what is nt?
anonymous
  • anonymous
then the exponent is 8 for 8 years right?
Mertsj
  • Mertsj
It's a fairly simple concept. n = 4, t = 8, nt=32. The exponent is nt. Therefore the exponent is 32
anonymous
  • anonymous
oh...Ok let me figure this out LOL
anonymous
  • anonymous
$56,361 ?
Mertsj
  • Mertsj
Did you read the problem?
anonymous
  • anonymous
yeah it said to round to the nearest dollar
Mertsj
  • Mertsj
Do you really think it makes sense to say they must invest more now then they will need in 8 years? Are they going to lose money on this investment or what?
anonymous
  • anonymous
Ok now I am really confused...A=35000(1+0.06/4)^32 This is correct right?
Mertsj
  • Mertsj
The AMOUNT they need in 8 years is 35000. What PRINCIPAL should they invest now so that the AMOUNT they will have in 8 years is 35000?
anonymous
  • anonymous
GRR I so dumb 35000=P(1+.06/4)^32
anonymous
  • anonymous
I wasn't even picking up on that..
anonymous
  • anonymous
Ok next would be 35000=P(1.015)^32 then 35000=P(1.6103243202) This is where I am getting stuck
Mertsj
  • Mertsj
Solve this equation: 24=6x
anonymous
  • anonymous
6*4=24
Mertsj
  • Mertsj
How did you get that?
anonymous
  • anonymous
multiplication
anonymous
  • anonymous
$21,734
Mertsj
  • Mertsj
The correct answer (which you would know if you had followed the instructions of your algebra I instructor to show your work) is "divide both sides by 6.
anonymous
  • anonymous
divide 35000 by 1.6103243202
anonymous
  • anonymous
Im not taking Algebra I am in MATH 156 how to teach elementary math this was the only problem I was stuck on =o)
anonymous
  • anonymous
I realized that I after you pointed out that I put the 35000 in the wrong spot...Thanks for the help!!!
Mertsj
  • Mertsj
Good for you and you are welcome.

Looking for something else?

Not the answer you are looking for? Search for more explanations.