Answer:
The investment required is: $5687
Step-by-step explanation:
Future Amount A= $7000
Rate r = 6% =0.06
Time t = 4
Compounded Weekly = n= 52
We need to find Principal Amount P
The formula used is: [tex]A=P(1+\frac{r}{n})^{n*t}[/tex]
Putting values and finding P
[tex]A=P(1+\frac{r}{n})^{n*t}\\7000=P(1+\frac{0.06}{52})^{4*52}\\7000=P(1.001)^{208}\\7000=P(1.231)\\P=\frac{7000}{1.231} \\P=5687[/tex]
So, The investment required is: $5687
