Solve the problem. Round to the nearest cent.Mark knows that he will need to buy a new car in 5 years. The car will cost $15,000 by then. How much should he invest now at 8%, compounded quarterly, so that he will have enough to buy a new car?

Use the present value formula: divide the future cost by the growth factor. At 8% compounded quarterly, the quarterly rate is 0.08 ÷ 4 = 0.02, and 5 years gives 20 quarters. So Mark should invest $15,000 ÷ (1.02)^20 = $10,094.57, which is choice $10,094.57.

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