Problema Solution
A company will need $45,000 in 8 years for a new addition. To meet this goal, the company deposits money in an account in an account today that pays 3% annual interest compound quarterly. Find the amount that should be invested to total $45,000 in 8 years.
The company shoud invest $______.
(round to the nearest dollar as needed)
Answer provided by our tutors
The money needed today is x
x(1+3%/4)^32 = 45000
So
x = 35430
So company shoud invest $35,430