staceyhayes40 staceyhayes40
  • 25-07-2022
  • Mathematics
contestada

how much must be deposited today to have $45,000 in 5 years with a quarterly compounding and an APR of 7.3%

Respuesta :

altavistard
altavistard altavistard
  • 25-07-2022

Answer:

$31,341.81

Step-by-step explanation:

The compound amount equation is A = P(1 + r/n)^(nt), where P is the unknown principal, r is the annual interest rate, n is the number of compounding periods per year and t is the number of years.  We want to solve this for P:

       A

------------------- = P

(1 + r/n)^(nt)

Substituting the given numerical values;

     $45,000

 ---------------------------  =  P

   (1+0.073/4)^(4*5)

Using a calculator, we evaluate this expression, obtaining:  $31,341.81

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