hello can anyone help me with this question

an executive decides that it is a good time to sell a certain stock. she wants to take a leave of absence in 5 years. how much stock should she sell and invest at 8% compound quarterly, so that $50,000 will be available in 5 years?

Question

hello can anyone help me with this question

an executive decides that it is a good time to sell a certain stock. she wants to take a leave of absence in 5 years. how much stock should she sell and invest at 8% compound quarterly, so that $50,000 will be available in 5 years?

anonymous · Answer

Have you learned the formula for compound interest?

anonymous · Answer

is it a=p(1+i)^nt?

anonymous · Answer

yes with a slight modification "i" should be the annual interest rate DIVIDED by n, the number of compounding periods in one year.

anonymous · Answer

so its 50,000(1+i/n)nt?

anonymous · Answer

okay so its 50,000(1+.08/5)^(.08)(5)