Posted by **Anonymous** on Sunday, January 11, 2009 at 12:11pm.

Please help me with the following problem. I'm not able to get the right answer! Please provide a full solution that I can follow... thank you.

How much money should be invested now at 7% to obtain $9,000 in 5 years if interest is compounded:

a) Quarterly

b) Continuously

------------

My work:

a)

B = 9000(1 + (0.07/4)^20

B = 12 733

b)

B(5) = 9000e^0.07

B(5) = 0652.57

------------

Textbook answer:

a) $6 361.42

b) $6 342.19

- Math: Present Value -
**economyst**, Monday, January 12, 2009 at 9:30am
Quarterly:

For an initial balance B, you want B*(1+.07/4)^20 = 9000.

(1+.07/4)^20 = 1.0175^20 = 1.414778

And 9000./1.414778 = 6361.42 QED

Continuously, you want B*e^(.07*5) = 9000.

e^(.35) = 1.4190675 -- take it from here.

- Math: Present Value -
**Anonymous**, Sunday, January 25, 2009 at 9:51pm
what is the present value of nine annual cash payments of 4 000 to be paid at the end of each year using an interest rate of 6%.

## Answer this Question

## Related Questions

algebra - A man invested half of his money at 5%, one-third of his money at 4%, ...

algebra - A man invested half of his money at 5%, one-third of his money at 4%, ...

math, algebrai II - Can someone please explain how they got the answer for this ...

aig math(please answer) - three bothers earned a total of $3,500. larry earned ...

MATHH - Suppose 10,000 is invested at 6 percent.how much additional money must ...

Algebra - Fiona invested $1000 at 8% compounded continuously. At the same time ...

Math Middle School - Please help. I do not have any idea about how to get ...

need help math - Solve the problem. Roberto invested some money at 7%, and then ...

algebra interest word problem - Solve the problem. Roberto invested some money ...

MATH!+ check please~ thanks in advance! - the equation 2x^2+ cy^2+Dx+Ey+f= 0 ...