Math

posted by .

How much money should be deposited today in an account that earns 6.5% compounded monthly so that it will accumlate to $8,000.00 in three years?

  • Math -

    monthly rate = .065/12 = .00541666..

    so
    x(1.00541666..)^36 = 8000
    x = 8000/1.005416666^36 = 6586.14

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math

    Please check my work, thank you If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
  2. Math

    The winner of a popular lottery is offered one of two options: i) a lump sum of $102 500 ii) $1000 every month for 10 years If the money can be invested at 3.0% p/a, compounded monthly, which option should the winner choose?
  3. Business Math

    Quinn and Julius inherited $50,000 each from their great-grandmother’s estate. Quinn invested her money in a 5-year CD paying 1.6% interest compounded semiannually. Julius deposited his money in a money market account paying 1.05% …
  4. contemporary math

    Quinn and Julius inherited $50,000 each from their great-grandmother’s estate. Quinn invested her money in a 5-year CD paying 1.6% interest compounded semiannually. Julius deposited his money in a money market account paying 1.05% …
  5. Math

    Quinn and Julius inherited $50,000 each from their great-grandmother’s estate. Quinn invested her money in a 5-year CD paying 1.6% interest compounded semiannually. Julius deposited his money in a money market account paying 1.05% …
  6. Math

    Richard Simons is selling his house. He has a choice of taking $125,000 today or $135,000 in 6 months. If he takes the money today, he can invest it at Valley Bank at 5% interest compounded monthly. a) How much would be in the account …
  7. Calculus

    How much should be deposited into an account today if it is to accumulate to $32400 in 30 years if the account bears interest at 8.01% compounded monthly?
  8. Math

    (a) Themba wants to deposit a sum of money into a savings account so that he will have R30 000 in 3 years time for an overseas holiday how much money must he deposit into the account if the interest paid on the savings is 8,5% p.a …
  9. math

    Rochelle deposits $350 in an account that earns 6% annual interest, compounded quarterly. How much money will be in the account in 8 years?
  10. math

    will need 3000 for a down payment on house in 10 years. account earns 6% compounded monthly, how much needs to be deposited now to reach that goal?

More Similar Questions