Answer:
Brandon wants $490 in 16 years by investing "x" dollars in an account that pays 5% compounded quarterly. How much is "x"?
Principal = Total / [ (1 + (r/n) )^ n * years]
n = 4 (for compounded quarterly)
Principal = 490 / [ (1. + (.05/4)) ^ 4 * 16]
Principal = 490 / [ (1.0125)^ 64]
Principal = 490 / 2.2145324106
Principal = 221.2656710971
So, if we invested 221.27 for 16 years at 5% compounded quarterly interest, we would have a total of $490.00
Step-by-step explanation:
