are there 20 quarters in 5 years?

Question

mertsj · Answer

what are quarters of years?  What does that mean?

anonymous · Answer

yea. im trying to work on my word problem and im having trouble.

anonymous · Answer

let me repost it and you can see what im talking about. ive gotten so far but im stuck

anonymous · Answer

a company will need 55,000 in 5 years for a new addition. to meet this goal the company deposits money in an account that pays 5% annual interest compound quarterly. find the amount that should be invested to total 55,000 in five years.

mertsj · Answer

yes there are 20 quarters in 5 years.  Just like there are 20 quarters in 5 of anything.

anonymous · Answer

i know i use a=p(1+r)^n

mertsj · Answer

$$A=A _{o}(1+\frac{r}{n})^{nt}$$

anonymous · Answer

ok i dont know that lol

anonymous · Answer

to find the total rate per period dont i divide

mertsj · Answer

$$55000=A _{0}(1+\frac{.05}{4})^{4(5)}$$

anonymous · Answer

ok thats were im lost. i divide 4 into 5?

anonymous · Answer

0.0125?

mertsj · Answer

Got your calculator?

mertsj · Answer

$$55000=A _{0}(1+.0125)^{20}$$

mertsj · Answer

$$55000=A _{0}(1.0125)^{20}$$

mertsj · Answer

$$55000=A _{0}(1.28204)$$

mertsj · Answer

$$A _{0}=$42,900.47$$