Question

$3000 in five years 4% interest compound 4 times a year. How much money should Tracey deposit

Answer 1

Hi there
The formula is
A=p (1+r/k)^kn
A future value 3000
P present value?
R interest rate 0.04
T time 5years
K compounded quarterly 4
We need to solve for p
P=A÷(1+r/k)^kn
P=3,000÷(1+0.04÷4)^(4×5)
P=2,458.6 round your answer to get
P=2459 this the amount should be deposited

Good luck!