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Tim wants to invest some money in a bank which compounds quarterly with an annual interest rate of 7%. To the nearest dollar, how much money should he invest if he wants a total of $60,000 at the end of 5 years?

 Mar 17, 2019
 #1
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60000 =  A ( 1 + .07/ 4)^(5 * 4)     where A is the amount we need

 

60000 = A ( 1 + .0175)^20

 

60000 = A ( 1.0175)^20         diide both sides by  (1.0175)^20

 

60000 / ( 1.0175)^20   = A  ≈  $42,409.47

 

 

cool  cool cool

 Mar 17, 2019

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