How do you find the present value that will grow to $20,000 if interest is 7% compounded quarterly for 15 quarters?
1 Answer
$15 417.49
Explanation:
The formula for compound interest is
In this question,
is
Dividing both sides by (1.297227864) gives us
The answer is
Thus, $15 417.49 will grow to $20 000 if interests is 7% compounded quarterly for 15 quarters.