Finance

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

How much must be invested today at 16% compounded quarterly to have $7,000 in 4 years? Round your answer to the nearest cent.

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  1. same thing
    Let me know what you get

  2. Po(1+r)^n = 7,000.
    Po = amount inv. today.
    r = 0.16/4 = 0.04 = quarterly % rate .
    n = 4*4 = 16 compounding periods.

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