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n b062 /db4b0831t03 7a3dd57d 16e64. 10016 Do Homework- Amanda Cohen-Google Chrom

ID: 3198644 • Letter: N

Question

n b062 /db4b0831t03 7a3dd57d 16e64. 10016 Do Homework- Amanda Cohen-Google Chrome ? Secure https://www.natht.com Student/PlayerHomework.aspx?homeworkidi467194768&questionld-4; ushed M MAT120-+-26577 Math for Liberal Arts, Spring 201, TTH 2:00-3:0 Amanda Cohen& Homework: Section 10.3 Homework Score: 0 of 1 pt 60' 11(7 complete)? HW Score: 40 10.3.17 tents Use the present value formula to determine the amount to be invested now, or the present The desired accumulated amount is S110.000 after 5 years invested in an account with 2% interes t compounded quarterly tra/ The amourt to be invested now, or the present value needed Round to the nearest cent as needed ) Enter your answer in the answer box and then click Check Answer All parts showing Do Homework-A... DOLt

Explanation / Answer

The formula for amount due to compound interest is

A = P (1 + r/n)nt

A = 110000 r = 0.02 n = 4 t = 5

=> 110000 = P (1 + 0.02/4)4*5

=> 110000 = P (1 + 0.005)20

=> 110000 = P * 1.00520

=> P = 110000 / 1.00520

=> P = $99556.92.