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Jet001 [13]
3 years ago
10

A company will need ​$45,000 in 8 years for a new addition. To meet this​ goal, the company deposits money in an account today t

hat pays 11​% annual interest compounded quarterly. Find the amount that should be invested to total ​$45,000 in 8 years.
Business
1 answer:
True [87]3 years ago
3 0

Answer:

The amount that should be invested to total $45,000 in 8 years is $18,995.

Explanation:

According to the situation, you have to calculate the amount that you have to invest in the present to get $45,000 in eight years. You can find it using the formula:

P= F/(1+(i/n))^nt

P= present value

F= future value: $45,000

i= interest: 11%

n= number of times compounded per year: 3

t= time in years

P= $45,000/(1+(0.11/3))^(8*3)

P= $45,000/(1+0.0366)^24

P= $45,000/2.369

P= $18,995

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