3. Suppose you wish to have $20,000 in your account at the end of six years. The account pays annual interest of 3% compounded quarterly. How much money will you need to invest in the account now?
and
4.
and
3. Suppose you wish to have $20,000 in your account at the end of six years. The account pays annual interest of 3% compounded quarterly. How much money will you need to invest in the account now?
20000 = A (1 + .03/4)^(6 * 4) divide both sides by (1 + .03/4)^(6 * 4)
20000 / (1 + .03/4)^(6 * 4) = A ≈ $ 16,716.63