help please...ive gotten so far..and im stuck...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.

Question

reemii · Answer

if you place a quantity A, how much to you get after one year?
and after two years?

reemii · Answer

trick: A+ y percent of A = A (1+y) 
example: A+5% of A = A (1+ 0.05)

anonymous · Answer

ok let me show you how far i have gotten...
i used a=p(1+r)^n
55000=p(1+0.0125)^20

anonymous · Answer

no i am stuck after that..

reemii · Answer

"5% annual rate compund quarterly" : doen't that just mean that it's %5% after one year?

reemii · Answer

typo: +5%

anonymous · Answer

wait is it 1.2820?

reemii · Answer

since we want to obtain 55,000 after 5 years, we can forget about the "quarterly compound" feature.
So you look for the number p such that p (1+0.05)^5 = 55,000, right?

anonymous · Answer

i think im confused on how your doing it. dont i change the 5% to a decimal and thats how i got 0.0125

reemii · Answer

$5\% = \frac{5}{100}$