# Finance

Solve the following word problem by using Table 11-2.

Stuart Daniels estimates that he will need \$24,000 to set up a small business in 6 years. Round your answers to the nearest cent.

a. How much must Stuart invest now at 8% interest compounded quarterly to achieve his goal?
\$ _________

b. How much compound interest will he earn on the investment?

\$ _________

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1. Nobody uses "tables" any more, this is 2020

8% interest compounded quarterly ----> rate is .02 per quarter
6 year = 24 quarter years

x(1.02)^24 = 24000

This is the same type of question as your previous post

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