Question
How much money should be deposited today in an account that eams 4% compounded quarterly so that it will accumulate to $11,000 in four
How much money should be deposited today in an account that eams 4% compounded quarterly so that it will accumulate to $11,000 in four years? Use the Compound Interest Formula (Business Math Version) to solve for Principal (also known as a "lump sum" deposit or inital value"). a) Find Penod Interest Rate (Round to 5decimal places as needed.) b) Find the total number of periods c) Solve the Compound Interest Formula (Business Math Version) for P FV P(1 FV P- (1- (HINT: Do not use a different formulal There is only one compound interest formula. We just rearrange it for our missing variable) Substitute the known values into the formula, and use your calculator to evaluate for P Do not round until the final answert The amount of money that should be deposited is (Round to the nearest cent)
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