Question

help Emma is going to invest in an account paying an interest rate of 2.6% compounded quarterly. How much would Emma need to invest, to the nearest cent, for the value of the account to reach $66,000 in 7 years?

Answer 1

Emma needs to invest $55,050.14.

Compound interest

Given that Emma is going to invest in an account paying an interest rate of 2.6% compounded quarterly, to determine how much would Emma need to invest, to the nearest cent, for the value of the account to reach $66,000 in 7 years, you should perform the following calculation:

• Principal amount x (1 + rate / number of annual compositions)^(years x number of annual compositions) = Interest
• X x (1 + 0.026/4)^(7x4) = 66000
• x x (1 + 0.0065)^28 = 66000
• x x 1.0065^28 = 66000
• x x 1.198907 = 66000
• X = 66000 / 1.198907
• X = 55050.14

Therefore, Emma needs to invest $55,050.14.

Learn more about compound interest in brainly.com/question/7420113