Final answer:
To find out how much should be deposited each quarter into an account paying 6.7% compounded to reach $4500 in 4 years, you can use the formula for compound interest.
Step-by-step explanation:
To find out how much you should deposit each quarter into an account paying 6.7% compounded, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the future value of the account, P is the principal amount being invested, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
Since you wish to have $4500 in 4 years, the future value (A) is $4500, the interest rate (r) is 6.7%, and the compounding frequency (n) is quarterly (4 times a year).
By substituting these values into the formula, you can solve for the principal amount (P), which is the amount you need to deposit each quarter.
Remember to convert the interest rate to a decimal by dividing it by 100.