Charlie wants to make a one-time investment in an account that earns 4% interest compounded quarterly. To earn $315,930 after 21

years, how much money must he invest?

A

$376,107.14

B.

$136,960.54

C. $138,640.70

OD. $265,381 20

$265,30

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Submit

B. $136,960.54

Step-by-step explanation:

Rate = r = 4%

Times = b = 4

Future Value = A = $315,930

No. pf Years = n = 21

Present Value = P = ?

A = P [1 + (r / b) ]ⁿᵇ

$315,930 = P [1 + (0.04 / 4]²¹ ˣ ⁴

$315,930 = P [1 + 0.01]⁸⁴

$315,930 = P [1.01]⁸⁴

$315,930 = P x 2.306723

P = $315,930 / 2.306723

P = $136,960.54