college algebra: Find present value, given end amt, rate,...

[blaine2022]

Find the present value required to achieve amount A when compounded at a rate of r for t years. Round to the nearest cent.

A=$6,500, t=10, r=7% compounded quarterly

A. $3304.24
B. $3247.41
C. $3304.27
D. $3252.59

okay..i tried this problem and i am not coming up with any of these answers..can someone help please?!

this is what i got -

A=P(1+ r/n )^nt

6,500 (1+.07/4) ^ (4)(10)

i came up with $13010.38

 

[Deleted member 4993]

Find the present value required to achieve amount A when compounded at a rate of r for t years. Round to the nearest cent.

A=$6,500, t=10, r=7% compounded quarterly

this is what i got -

A=P(1+ r/n )^nt

6,500 (1+.07/4) ^ (4)(10)

i came up with $13010.38

Your present value must be less than the future value. That is you need to solve

6500 = A * (1 + 0.07/4)^40 .... now find 'A'