Answer:
The answer is $15,376.01
Explanation:
So Quincy should invest $15,376.01 today.
Please refer to the attached file for calculation.
Answer:
$15373.9
Explanation:
The question demands that how much Quincy should invest today, which means the present value to get $22000 after three years. The $22000 is the future value, and three years is the period.
The formula will be :
PV = [tex]\frac{FV}{(1+r)^{n} }[/tex]
The question also states that the 12% interest rate compounded monthly, which we will solve as r= 12 divided by 12 =1 %. Whereas, n is the number of periods and will be displayed as n= 3 years multiply by 12 months to get 36 time period.
So by putting the values in the formula as below:
PV = [tex]\frac{22000}{(1+0.01)^{36} }[/tex]
PV = $15373.9
So, Quincy has to invest this amount to get $22000 after 3 years with 12% rate compounded monthly.
