ABC Bank is offering 3.6 percent compounded quarterly on its savings accounts. You deposit some amount of cash in the saving account today. After 5 years, you have $89,719 in your account. How much did you deposit today

PV = $74,999.97

Explanation:

Giving the following information:

Interest rate = 0.036/4 = 0.009

Number of quarters = 5*4 = 20

Future value = $89,719

We need to determine the initial inventment. We will use the following formula:

PV = FV / (1+i) ^n

PV = 89,719 / (1.009^20)

PV = $74,999.97