Math Problem Statement
How much money should be invested in an account that earns 8% interest compounded quarterly to yield $10,000 in 7 years? (Round your answer to the nearest cent.)
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)
Present Value Formula: P = A / (1 + r/n)^(nt)
Theorems
Compound Interest Theorem
Suitable Grade Level
Grades 10-12
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