Ask Question
7 December, 20:32

What amount must he invest today if his investment earns 8% compounded annually? What amount must he invest if his investment earns 8% annual interest compounded quarterly? (Round factor values to 5 decimal places, e. g. 1.25124 and final answers to 0 decimal places, e. g. 458,581.)

+2
Answers (1)
  1. 7 December, 20:41
    0
    Compounded annually:

    24820 = x * (1.08^3) = 1.259712x

    x = 24820/1.259712 = $19703

    Compounded quarterly:

    24820 = x * (1.02) ^12 = 1.26824x

    x = 24820/1.26824 = $19570

    Explanation:

    I hope you can understand better and no need for further explanation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What amount must he invest today if his investment earns 8% compounded annually? What amount must he invest if his investment earns 8% ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers