The amount of money you should initially deposit in an accou

The amount of money you should initially deposit in an account paying 8% compounded quarterly in order to have $100,000 after 20 years can be determined using formula for:

A. Single-payment, compound interest

B. Single-payment, simple annual interest

C. Periodic payments: present value of an annuity / installment payment on loan

D. Periodic payments: future value of an ordinary annuity

Solution

Since there is a single payment initially mentioned in the question. SO compound interest formula . Hence option A