elementary quantitative methos

a businesswoman wants to invest the same sum of money at th same of each quarter for 5 years.the investment will earn 8,5 percent interest per year,quarterly compounded. In order to have accumuated a total of R30000 at the of five years,what will the required quarterly investments be?

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  1. i = .085/4 = .02125
    n = 20
    amount = A = 30000
    payment = P = ?

    You must memorize the formulas
    A = P( (1+i)^n - 1)/i
    and
    PV = P (1 - (1+i)^-n )/i, where PV is the present value

    just sub in all your data and solve for the missing variable.

    30000 = P( 1.02125^20 - 1).02125
    30000 = P(24.602109..)
    P = 1219.41

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    posted by Reiny

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