Question

Algebraically manipulating the formula FV = P(1 + )nt, how much money is needed as an initial deposit to reach a future value of $8,700, if the account is earning 7%, compounded quarterly, for 6 years (to the nearest whole dollar)?
$6,154.33
$5,737.11
$5,432.19
$4,908,66
None of these choices are correct.

Answer 1

Answer:

→ None of these choices are correct.

Step-by-step explanation:

FV = P(1 +nt )

p = FV /(1 +nt ) = 8700 / ( 1 + 6x0.07) = 8700 /  1 .42 =  $6126.7

→ None of these choices are correct.