Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

How much would you need to deposit in an account now in order to have $3000 in the account in 15 years? Assume theaccount earns 5% interest compounded quarterly.

Sagot :

Okay, here we have this:

According with the provided information, we are going to replace in the following formula:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Replacing we obtain:

[tex]\begin{gathered} 3000=P(1+\frac{0.05}{4})^{4\cdot15} \\ \end{gathered}[/tex]

Now, let's solve for P, that is the principal investment:

[tex]\begin{gathered} P\mleft(1+\frac{0.05}{4}\mright)^{4\cdot\: 15}=3000 \\ P\frac{4.05^{60}}{4^{60}}=3000 \\ P=3000\cdot\frac{4^{60}}{4.05^{60}} \\ P\approx1,423.70 \end{gathered}[/tex]

Finally we obtain that the deposit wold be aproximately of $1,423.70.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.