Finance

You wish to deposit an amount now that will accumulate to $100,000 in 10 years. How much less would you have to deposit if the rate of interest was 8% compounded monthly versus annually?

So ive tried doing this question but I cant seem to get the final answer which is supposed to be $1267. Im using my financial calculator to solve the question but I have no idea how to do this question. I know we are solvin for pv (present value) but Im not getting the answer. Ive looked through my notes and we dont have any question worded like this. help please

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  1. Po(1+r)^n = 100,000.
    r = 0.08/12 = 0.00666667 = monthly % rate.
    n = 1comp./mo * 120mo, = 120 compounding periods.

    Po(1.00666667)^120 = 100,000.
    Po = $45,052.33 = initial dep.

    Po(1+r)^10 = 100,000.
    Po(1.08)^10 = 100,000.
    Po = $46,319.35.

    46,319.35 - 45,052.33 = $1267.02. Less.

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