Question

Student needs $1,000 in 4 years what mushy invest today if her investment earns 4% annual interest compounded quarterly

Answer 1

$\bf \qquad \qquad \textit{Future Value of an ordinary annuity} \\\\ A=pymnt\left[ \cfrac{\left( 1+\frac{r}{n} \right)^{nt}-1}{\frac{r}{n}} \right]$

$\bf \qquad \begin{cases} A= \begin{array}{llll} \textit{ amount}\\ \textit{already compounded} \end{array}\to & \begin{array}{llll} 1000 \end{array}\\ pymnt=\textit{periodic payments}\to &p\\ r=rate\to 4\%\to \frac{4}{100}\to &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, means 4 times} \end{array}\to &4\\ t=years\to &4 \end{cases}$

solve for "pymnt"