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16 March, 07:21

how much money should be deposited today in an account that earns 5% compounded quarterly so that it accumulate to $7500 in 5 years

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  1. 16 March, 07:30
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    Knowing that it is a quarterly rate, we know that there are 20 quarters in 5 years:

    20 (1.05 (x)) = 7500

    21x = 7500

    x = 357.14

    You should deposit about $357.14
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