Solve the problem. Round to the nearest cent.Barbara knows that she will need to buy a new car in 3 years. The car will cost $15,000 by then. How much should she invest now at 7%, compounded quarterly, so that she will have enough to buy a new car?

Use the present value formula because Barbara is investing now to reach a future amount: PV = 15,000 ÷ (1 + 0.07 ÷ 4)^(3 × 4). The quarterly rate is 1.75%, and there are 12 quarters, so PV ≈ $12,180.87. She should invest $12,180.87 now, which is choice A.

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