Lena is going to invest to help with a down payment on a home. How much would she have to invest to have 54,300 after 6 years, assuming an interest rate of 1.63% compounded quarterly?Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas.

Solution

Lena is going to invest to help with a down payment on a home. How much would she have to invest to have 54, 300 after 6 years, assuming an interest rate of 1.63% compounded quarterly?Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas.

Solution

Principal : 49250.67

Solution steps

Translate the problem into an equation:

54300 = P (1 + \frac{0.0163}{4})^{4 \cdot 6}

Solve for

P, 54300 = P (1 + \frac{0.0163}{4})^{4 \cdot 6} : P = 49250.67

Principal : 49250.67

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