business math

Question

Edward has decided to purchase a high-performance motorcycle. he'll need $9,500 in 3 years. his bank offers an interest rate of 8% compounded quarterly. how much does Edward need to deposit now to have enough money for his new motorcycle in 3 years

Answer 1

(1.08)^12 * X = $9500 

X = $9500/ [(1.08)^12] = $9500 / 2.52 = $3772.58