Homework Answers
We use the formula:
A=P(1+r/4)^4n
where
A=future value
P=present value
r=rate of interest
n=time period.
5000=P*(1+0.1/4)^(4*5)
P=5000/(1+0.1/4)^(4*5)
=5000*0.610270943
=$3051.35(Approx)
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