How much money should be invested in an account that earns 8% interest compounded quarterly to yield $10,000 in 4 years? (Round your answer to the nearest cent.)
Added by Robert C.
Step 1
- Future Value (FV) = $10,000 - Annual interest rate (r) = 8% = 0.08 - Number of years (t) = 4 - Compounded quarterly means n = 4 times per year The formula for compound interest is: \[ FV = P \left(1 + \frac{r}{n}\right)^{nt} \] where \(P\) is the Show more…
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