How much should be invested at 5% compounded quarterly so that 9 years later the investment will be worth $5000?

Answer 1

Using formula P = P₀(1 + r/n)^nt,

where P₀ is initial amount we have to find;

From here P₀ = P(1 + r/n)^-nt = 5000(1 + 0.05/4)^-36 = $3197.05