Bank - Interest Problem?

0 ⤊

Bank - Interest Problem?

Ho w much money would you have to put into a savings account initially at 8% interest compounded quarterly to have $6600 after 10 years?
How would I set up the difference formula?

2007-04-25 05:56:10 · 3 answers · asked by gently_caress 2 in Science & Mathematics ➔ Mathematics

3 answers

x*(1.02)^40=6600
x=6600/(1.02)^40=2989.07 dollars

2007-04-25 06:01:04 · answer #1 · answered by bruinfan 7 · 0⤊ 1⤋

If you have a financial or graphing calculator..

PV = ?
FV = 6600
PMT = 0
i = 8%/4 = 2%
N = 10 * 4 = 40

Solve for the the PV...

The answer = $2,989.08

2007-04-25 13:06:30 · answer #2 · answered by r h 1 · 0⤊ 0⤋

$8250

8250 x .08, times 10.

2007-04-25 13:02:28 · answer #3 · answered by sbravosystems 3 · 0⤊ 0⤋