ANSWER :
$1484.94
EXPLANATION :
The compounding formula is :
[tex]A=P\left(1+\frac{r}{n}\right)^{nt}[/tex]where A = future value
P = present value
r = rate of interest
n = number of compounding
t = time in years
From the problem,
P = unknown
A = $2000
r = 6% or 0.06
n = 4 (Quarterly)
t = 5 years
Using the formula above :
[tex]\begin{gathered} 2000=P\left(1+\frac{0.06}{4}\right)^{4\left(5\right)} \\ 2000=P\left(1.015\right)^{20} \\ P=\frac{2000}{1.015^{20}} \\ P=1484.94 \end{gathered}[/tex]The answer rounded to the nearest cent is $1484.94
