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Luba_88 [7]
3 years ago
6

Find the present value that will grow $1000 if the annual interest rate is 7.5% compounded quarterly for 5 years

Mathematics
1 answer:
Reil [10]3 years ago
3 0

Answer:

911.3010934

Step-by-step explanation:

Formula:

A = P(1 + r/4)^n

In this case:

A = 100

P = ?

R = .075 (7.5%)

N = 5

---

1000 = P(1+.075/4)^5

1000 = P(1.01875)^5

1000 = P(1.097332163)

1000/1.097332163 = P

P = 911.301

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