Find the amount that should be invested now to accumulate the following amount, if the money is compounded asindicated.
-$\$ 3500$ at $4 \%$ compounded quarterly for $12 \mathrm{yr}$
A) $\$ 1329.09$
B) $\$ 2186.09$
C) $\$ 2170.91$
D) $\$ 5642.79$

Question

Quizplus · Accepted Answer

To find the present value, use the formula $ P = \frac{A}{(1 + \frac{r}{n})^{nt}} $, where $ A = 3500 $, $ r = 0.04 $, $ n = 4 $, and $ t = 12 $. Calculating gives $ P \approx 2170.91 $.

Find the Amount That Should Be Invested Now to Accumulate $3500\$ 3500$3500

Find the Amount That Should Be Invested Now to Accumulate $\$ 3500$