Question

How much would you need to deposit in an account now in order to have $4000 in the account in 10 years? Assume the account earns 8% interest compounded quarterly. Round your answer to the nearest cent.

Answer 1

Step-by-step explanation: I hope, here is help

Answer 2

$1811.56

Explanation:

The future value of P at interest rate r compounded n times per year for t years is ...

FV = P(1 +r/n)^(nt)

4000 = P(1 +.08/4)^(4·10)

P = 4000·1.02^-40 ≈ 1811.56

$1811.56 must be deposited now in order to have $4000 in 10 years.