Problema Solution
In 7 years, Tom's trucking must pay $6,250 to an executive as a retirement bonus. what lump sum can be invested today, at 4% compounded quarterly, so enough money will be available?
Answer provided by our tutors
A= P(1 + R/N)NT
P NOT GIVEN..
6250=P(1 + 0.04/4)4*7
P=6250*(4.04/4)28
P= 6250 * (1.01)28