Suppose you invest in an account that pays 6% interest, compounded quarterly. You would like your investment to grow to $8000 in 14 years. How much would you have to invest in order for this to happen?
A) $2125
B) $2290
C) $2650
D) $3475

Question

Quizplus · Accepted Answer

To find the initial investment, use the formula for compound interest: $ P = \frac{A}{(1 + \frac{r}{n})^{nt}} $, where $ A = 8000 $, $ r = 0.06 $, $ n = 4 $, and $ t = 14 $. Solving this gives approximately $3475.

Suppose You Invest in an Account That Pays 6% Interest