You need $25,000 in 5 years. You invest 5% compound quarterly...how much do you need to put in to begin with?

Question

anonymous · Answer

~$19,500

anonymous · Answer

Dude, he said compounding quarterly.  
25000=x(1+.0125)^(5*4)

anonymous · Answer

Five years is twenty quarters.  If interest is compounded quarterly, then the simple interest rate is
1.25% per quarter.  Let x be the initial deposit.  If nothing is withdrawn of deposited during the next five years, then the amount of the account at the end of feve years is
$$x(1.025)^{20} = $25,000.$$Solve for x to get
$$x = $25,000/(1.025)^{20} = $15,256.77$$

anonymous · Answer

^You have an error in your calculations - you used 1.025 instead of 1.0125.  That's why your answer is ~$4000 off. o.O

anonymous · Answer

You're right about that.  My glitch

anonymous · Answer

so
$$$25,000/(1.0125)^{20} = $19,500.21.$$

anonymous · Answer

That's much better.