# 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.