Posted by **Anonymous** on Monday, November 7, 2011 at 2:49pm.

Alice requires $10,000 in two years. If the interest rate is 6% and compounded

quarterly, how much must Alice place in the account to have the required amount? (a) $ 6,274.10 (b) $ 8,877.10 (c)$ 8,573.40 (d) $ 5,000.00 (e) $ 10,000.00

- Math -
**Henry**, Wednesday, November 9, 2011 at 3:53pm
Pt = Po(1+r)^n.

r = (6% / 4) / 100% = 0.015 = QPR expressed as a decimal.

n = 4comp/yr * 2yrs = 8 Compounding periods.

$10,000 = Po(1.015)^8,

Po = 10,000 / (1.015)^8 = $8877.11.

- Math -
**ffgdee**, Thursday, April 28, 2016 at 2:12am
How much compound interest will an account of $12,000 bear after 6 years at 3.2% APR, compounded annually? (Hint: Use the formula for annual compound interest.)

$2,496.38

$14,496.38

$1,896.38

$496.38

## Answer This Question

## Related Questions

- Math - A person wants to establish an annuity for retirement purposes. He wants ...
- math - Jim wants to deposit money in an account to save for a new stereo system ...
- Mathematics and investment - 1. Angelo wants to renovate his house in 3 years. ...
- math - A deposit of $2,000 earns interest at a rate of 14% compounded quarterly...
- value of money - A deposit of $2,000 earns interest at a rate of 14% compounded ...
- math - Alice took out a $15,000 loan for college. She is borrowing money from ...
- Math - (a) Themba wants to deposit a sum of money into a savings account so that...
- Math - Alice Wolf wants to know how much she will have to invest today in order...
- Algebra - Find the principal when the amount in the account is 11,000 and rate ...
- math - Phillip opened a savings account with an annual interest rate of 8% and ...

More Related Questions