Julia asked in Business & FinanceInvesting · 1 month ago

Would like to save 14,000 . Currently has 11,000. At what interest rate compounded quarterly would she need to invest money to have 14,000 ?

In 5 years? Answer rounded to the nearest hundredth of a percent

5 Answers

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  • 4 weeks ago

    i = (FV / PV)^(1 / n) - 1

    n=5 x 4 =20

    i = (14000 / 11000)^(1 / 20) - 1

    This is the period (quarterly) rate

    Annual rate = 4 x ((14000 / 11000)^(1 / 20) - 1) = 4.85%

  • 4 weeks ago

    good guess is 7% - 8%. NOW YOU find the right formula and do your own homework (!) P S considering this is a real life section, is that pre-tax or after tax ??

  • 1 month ago

    (((14/11)^(1/20))-1) x 400 = 4,85%

  • Don G
    Lv 7
    1 month ago

    FV 14,000, PV 11,000, N 20, requires a quarterly Rate of 1.213%, an EAR of 4.941% without quarterly payments.

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  • Anonymous
    1 month ago

    I have no interest in doing your homework.

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