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Please answer this question. 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? Thanks!

 Jan 18, 2019
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60000 = A  ( 1 + .07 / 4) ^(5 * 4)

 

60000 = A ( 1.0175 )^20       

 

60000 / [ 1.0175]^20  = A ≈    $42,409.47 

 

 

cool cool cool

 Jan 18, 2019

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