# 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

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- olliverLv 64 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%

- SumDudeLv 74 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 ??

- Don GLv 71 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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- Anonymous1 month ago
I have no interest in doing your homework.

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