Problema Solution

Charlie wants to make a one-time investment in an account that earns 4% interest compounded quarterly. To earn $200,131 dollars after 20 years, how much money must he invest?

Answer provided by our tutors

A = P (1+ r/100)n

200131 = P(1 + 4/400)4*20

200131 = P (101/100)80

200131 = P * 2.216

p = 90311.8