You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the nearest dollar) should you deposit each quarter into an account paying 8% compounded quarterly?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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QUESTION 5
You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the
nearest dollar) should you deposit each quarter into an account paying 8% compounded quarterly?
Summarize the information provided, stating the interest rate in a decimal form.
PN = 4000
r = 0.08
N =
2
k =
4
Identify the formula you will
to solve by writing the letter of the formula here:
use
A. A=P.(1+rt)
В.
P. = P.1+
rNk
1+
С.
PN
=
D.
P.
-[1+
Solve the problem and give your answer here:
Transcribed Image Text:QUESTION 5 You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the nearest dollar) should you deposit each quarter into an account paying 8% compounded quarterly? Summarize the information provided, stating the interest rate in a decimal form. PN = 4000 r = 0.08 N = 2 k = 4 Identify the formula you will to solve by writing the letter of the formula here: use A. A=P.(1+rt) В. P. = P.1+ rNk 1+ С. PN = D. P. -[1+ Solve the problem and give your answer here:
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