<u>Answer-</u>
He needs to put $10345 in the account today, in order to get 15000 in five years.
<u>Solution-</u>
We know that,
Where,
A = future value of the investment with interest = 15000
P = principal investment amount
r = annual interest rate (decimal) = 7.5% = 0.075
n = number of times that interest is compounded per year = 4
t = the number of years the money is invested = 5
Putting the values,
