you are going to need $13,000 in 4 years. average of 4.9% APR compounded quarterly over that time, how much would you need to deposit now?

Question

Please give me the answer to this problem as soon as possible

Answer 1

A = amount in t years

P = initial investment

r = annual interest rate (in decimal form)

t = number of years

n = number of compoundings per year

 

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

 

13000 = P(1 + 0.049/4)⁽⁴⁾⁽⁴⁾

13000 = P(1.01225)¹⁶

13000 = P(1.215079145)

 

P = 13000/(1.215079145) = $10,698.89