Q7 Your company needs to have 4046500 five years from now If

Q7. Your company needs to have $40,465.00 five years from now. If the interest rate at your bank is 6% compounded quarterly, how much will you need to deposit into your account today in order to have the desired amount in 5 years?
   a. $29,999.26
   b. $29,666.92
   c. $30,044.05
   d. $30,000.00
   e. $20,044.05

Solution

by the formula of compound interest

Amount = principal*[1 + (rate/100)]^time

thus, 40465 = principal*[1 + (6/400)]^4*5 =  principal*[1 + (6/400)]²⁰

or, principal = 30044.065

Hence the correct option is :-  c. $30,044.05