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Alex73 [517]
3 years ago
13

A company will need 25,000 in 7 years for a new additon. To meet this goal, the company deposits money into an account today tha

t 3% annual interest compound quarterly. Find the amount that should be invested to total 25,000 in 7 years.
Mathematics
1 answer:
Mrac [35]3 years ago
6 0
You can use the simple interest formula 
P = irt

We need P, which is the primary (or principal) investment, and we know that:

rate = 3% (0.03)
time = 7
i = $25000

So, just plug in and solve:
I = 25000(0.03)(7)
I = 5250

The company needs to invest $5250 today, to make $25000 in 7 years.


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