Aisha is going to invest in an account paying an interest rate of 2.7% compounded quarterly. How much would Aisha need to invest, to the nearest ten dollars, for the value of the account to reach 6,800 in 16 years?

Soluzione

A i s ha i s g o in g t o in v es t in an a cco u n t p a y in g an in t eres t r a t e o f 2.7% co m p o u n d e d q u a r t er l y . Ho w m u c h w o u l d A i s ha n ee d t o in v es t, t o t h e n e a res t t e n d o ll a rs, f or t h e v a l u e o f t h e a cco u n t t o re a c h 6, 800 in 16 ye a rs ?

Principal : 4421.04

Fasi della soluzione

Translate the problem into an equation:

6800 = P (1 + \frac{0.027}{4})^{4 \cdot 16}

Risolvi per

P, 6800 = P (1 + \frac{0.027}{4})^{4 \cdot 16} : P = 4421.04

Principal : 4421.04