Find the present value that will grow to $30,000 if interest is 2% compounded quarterly for 17 quarters

Present value is; PV ≈ $27,561

Step-by-step explanation:

We are given;

Future value; FV = $30,000

Rate quarterly; R = 2% * ¼ = 1/200 = 0.005

Time; T = 17 quarters

We can find the present value from the formula;

FV = PV (1 + R) ^ (T)

So, making PV the subject, we have;

PV = FV/[ (1 + R) ^ (T) ]

Where PV is present value and all other terms remain as i defined them earlier.

Plugging in the relevant values, we obtain;

PV = 30000/[ (1 + 0.005) ^ (17) ]

PV ≈ $27,561