r = 5% = 0.05
t = 4 years
n = 4 (quarterly)
A = 1000
P = ?
1000 = P (1.2199) ==> P = 1000/1.2199 = 819.74
Answer:
$819.74
[tex]1000\text{ = P(1 + }\frac{0.05}{4})^{4(4)}=P(1+0.0125)^{16}=P(1.0125)^{16}\text{ = P(1.2199)}[/tex]
[tex]P\text{ = }\frac{1000}{1.2199}\text{ = 819.74}[/tex]
