Yielding the desired future amount


Problem 1: Find the amount that should be set aside today to yield the desired future amount.

Future amount needed $9000
Interest rate 48%
Compounding period Quarterly
Investment time 4 years

Problem 2: Rosa Burnett needs $6,000 in three years to make the down payment on a new car. How much must she invest today if she receives 2.5% interest annually, compounded annually?

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Finance Basics: Yielding the desired future amount
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