A bank account receives 5% annual interest, compounded monthly. You want to save $6000 in three years. How much should you deposit to the bank account now?

mundocromadomg

mundocromadomg

Answered question

2022-09-22

A bank account receives 5% annual interest, compounded monthly. You want to save $6000 in three years. How much should you deposit to the bank account now?

Answer & Explanation

rae2721

rae2721

Beginner2022-09-23Added 8 answers

Given:
r = 5 % 0.05 n = 12 A = $ 6000 t = 3 A = P ( 1 + r n ) n ( t ) 6000 = P ( 1 + 0.05 12 12 ( 3 ) 600 = P ( 12 / 05 ) 36 P = 5165.85 $ 5166

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