6. find the present value. amount needed: $12,300 time (years): 4 rate: 4% compounded: quarterly $10,514.04 $11,820.05 $10,332.00 $10,489.69

To solve this we are going to use the formula for  future value: 
where 
is the future value 
is the present value 
is the interest rate in decimal form 
is the number of times the interest is compounded per year
is the time in years

We know for our problem that , , and . Since the interest is compounded quarterly, it is compounded 4 times per year; therefore, . Lets replace those values in our formula to find and solve for :





We can conclude that the present amount needed to have $12,300 after 4 years according to your given choices is $10,489.69