Answered

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Find the principal needed now to get the given amount; that is, find the present value.To get $800 after 4 years at 9% compounded quarterlyThe present value of $800 is $(Round to the nearest cent as needed.)

Sagot :

[tex]\operatorname{\$}560.37[/tex]

1) Since this is a compound interest investment, we can write out the following, assuming that there will not be any other investment on this during those 4 years.

2) So, we can write out the following formula:

[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ 800=P(1+\frac{0.09}{4})^{4\times4} \\ 800=P(1+\frac{0.09}{4})^{16} \\ 800=P(1.0225)^{16} \\ P=\frac{800}{(1.0225)^{16}} \\ P\approx\$560.37 \\ \end{gathered}[/tex]

Thus this is the answer

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