finance

$11,000, invested for 9 years at 3% compounded quarterly.

  1. 👍 0
  2. 👎 0
  3. 👁 213
  1. P = Po(1+r)^n

    Po = $11,000

    r = (3%/4)/100% = 0.0075 = Quarterly
    % rate expressed as a decimal.

    n = 4comp./yr. * 9yrs. = 36 Compounding
    periods.

    Plug the above values into the given Eq
    and solve for P(principal).

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. maths

    Ty received a separation payment of $25 000 from his former employer when he was 35-years old. He invested that sum of money at 5.5% compounded semi-annually. When he was 65, he converted the balance into an ordinary annuity

  2. Economics

    A man wishes to bequeath to his daughter P20,000 ten years from now. What amount should he invest now if it will earn interest of 8% compounded annually during the first 5 years and 12% compounded quarterly during the next 5

  3. trig

    If $5000 is invested at a rate of 3% interest compounded quarterly, what is the value of the investment in 5 years?

  4. Math

    Ernie invested $5,000 in an account for 3 years at 4% interest compounded quarterly Inflation over the period averaged 2% per year. a. Calculate the value of the investment after 3 years b. find the real rate of return on the

  1. UOG

    An initial investment of $12,000 is invested for 2 years in an account that earns 4% interest compounded quarterly. Find the amount of mnoey in the account at the end of the period.

  2. Math , check my answer ?

    Lynne invested $35,000 into an account earning 4% annual interest compounded quarterly. She makes no other deposits into the account and does not withdraw any money. What is the balance of Lynne's account in 5 years? $37,153.21

  3. Mathematics

    Find the interest earned if RM 7500 is invested for 6 years at 6.4% compounded quarterly.

  4. algebra

    determine the amount of an investment if $500 is invested at an interest rate of 4.25% compounded quarterly for 12 years?

  1. math

    If $86,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it provide at the end of each quarter for the next 3½ years?

  2. math

    What is $600 invested at 9% interest, compounded quarterly, worth in 3 years? a. $640.50 b. $641 c.$762 d.$784

  3. Algebra

    An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true? A. The investment will continue to grow at a rate of 7% per year

  4. math

    Find the accumulated amount A, if the principal P is invested at an interest rate of r per year for t years. P = $2500, r = 3%, t = 3, compounded quarterly $ ?

You can view more similar questions or ask a new question.