How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume theaccount earns 8% interest compounded quarterly.

Respuesta :

We can use the next formula

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

Where A is the amount, P is the principal, r is the rate n is the periods and t is the time

in our case

A=6000

n=4

r=0.08

t=15 years

We substitute in the formula

[tex]6000=P(1+\frac{0.08}{4})^{4(15)}[/tex]

then we isolate the Principal

[tex]P=\frac{6000}{(1+\frac{0.08}{4})^{4(15)}}=1828.70[/tex]

The principal is $1828.70

ANSWER

You need to deposit $1828.70 in an account now in order to have $6000