Question

Suppose you want to end up with $5,000 in a bank account after 4 years earning a rate of 3.5% compounding monthly. How much would you have to initially invest? Round to the nearest dollar.

Answer 1

\[5000=P(1+\frac{0.035}{12})^{4\times12}=P \times1.002917^{48}\]
\[P=\frac{5000}{1.002917^{48}}=you\ can\ calculate\]

Answer 2

Thanks!

Answer 3

You're welcome :)