In 2 years, David wants to buy a bicycle that costs 600.00. If he opens a savings account that earns 4% interest compounded quarterly, how much will he have to deposit as principal to have enough money in 2 years to buy the bike?

Solución

Solución

Principal : 554.09

Pasos de solución

Translate the problem into an equation:

600 = P (1 + \frac{0.04}{4})^{4 \cdot 2}

Resolver para

P, 600 = P (1 + \frac{0.04}{4})^{4 \cdot 2} : P = 554.09

Principal : 554.09

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