Mathematics: How much must you deposit in an account that pays 8% annual interest compounded monthly to have a balance of $1,000 after one year

Okay, that s cool. then why did you post this as a question...

How much must you deposit in an account that pays

ruinmylife

11.01.2022

$\$923.36$

Step-by-step explanation:

we know that

The compound interest formula is equal to

$A=P(1+\frac{r}{n})^{nt}$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

$t=1\ year\\ A=\$1,000\\ r=0.08\\n=12$

substitute in the formula above and solve for P

$\$1,000=P(1+\frac{0.08}{12})^{12*1}$

$P=\$1,000/(1+\frac{0.08}{12})^{12*1}=\$923.36$

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