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Find the amount of money that needs to be invested in order to have $4,000.00 in...

Find the amount of money that needs to be invested in order to have $4,000.00 in 2 years. The interest is compounded quarterly at 2%.

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Answer #1

Quarterly rate = 2/4 = .50%

number of quarters = 2* 4= 8

Amount to be invested =Future value *(1+i)^n

                   4000 *(1+.005)^8

                    4000*(1.005)^8

                    4000*.96089

                    3843.56

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