Most scholarships are established by making a one time deposit into an account. The scholarship money is then taken from the earned interest on the account at the end of each investment year. How much money should you deposit into an account earning an annual interest rate of 5.968% compounded monthly to establish an annual scholarship worth $600.00? I need to make the $600 in interest each year, I just can't seem to get the right answer

Question

Most scholarships are established by making a one time deposit into an account. The scholarship money is then taken from the earned interest on the account at the end of each investment year. How much money should you deposit into an account earning an annual interest rate of 5.968% compounded monthly to establish an annual scholarship worth $600.00?        I need to make the $600 in interest each year,  I just can't seem to get the right answer

anonymous · Answer

Amount of Money x (1 + 5.968/100)^12 = 600

anonymous · Answer

why 100?

anonymous · Answer

percentage.

anonymous · Answer

wait never mind, that's what I thought, but I'm confused as how to set it up so the 600 is only in interest, I keep getting numbers in the 500's, which are too small to make 600 each year

anonymous · Answer

** {Amount of Money x (1 + 5.968/100)^12 } - Amount = 600

anonymous · Answer

So you are correct.

anonymous · Answer

That cancels out the amounts of money variables...

anonymous · Answer

Amount is 594.

anonymous · Answer

nope,  coming up as not correct