Posted by Maame on Saturday, May 26, 2012 at 10:54am.
Rico can invest money at 10%/a compounded quarterly. He would like
$15 000 in 10 years. How much does he need to invest now?

MATH  Maame, Saturday, May 26, 2012 at 11:04am
PV = A( 1+i)^n
=15,000(1+0.025)^40
=$5586.46

MATH  drwls, Saturday, May 26, 2012 at 11:09am
The balance gets multiplied bu 1.025 forty times.
X*(1.025)^40 = 15,000.
2.685063838X = 15,000.
X = $ 5586.46
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