Math Problem Statement

How much would you need to deposit in an account now in order to have $2,000.00 in the account in 11 years? Assume the account earns 9% interest compounded quarterly.

You need to deposit now to have $2,000.00 in the account in 11 years.

Solution

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Math Problem Analysis

Mathematical Concepts

Compound Interest
Exponential Growth
Algebra

Formulas

Compound interest formula: A = P(1 + r/n)^(nt)
Rearranged formula to find present value: P = A / (1 + r/n)^(nt)

Theorems

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Suitable Grade Level

Grades 10-12