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To the nearest dollar, how much money needs to be invested in an account that earns 8 % interest, compounded quarterly, in order to have $12,000 at the end of 3 years?

Re: To the nearest dollar, how much money needs to be invested [#permalink]
05 Feb 2018, 05:54

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Let the principal amount is P. In here we have used the multiplier concept for compounding quarterly. So, 12000=p(1+8%/4)^(3*4) or, p ~ 9500 So A is the answer.

Re: To the nearest dollar, how much money needs to be invested [#permalink]
05 Mar 2018, 07:25

YMAkib wrote:

Let the principal amount is P. In here we have used the multiplier concept for compounding quarterly. So, 12000=p(1+8%/4)^(3*4) or, p ~ 9500 So A is the answer.

you did not turn 8/4 into percent form, it's 8/4/100
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Re: To the nearest dollar, how much money needs to be invested
[#permalink]
05 Mar 2018, 07:25