SOLUTION: How much would you need to deposit in an account now in order to have $3000 in the account in 5 years? Assume the account earns 7% interest compounded monthly. (Round up to the cen

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Question 1190273: How much would you need to deposit in an account now in order to have $3000 in the account in 5 years? Assume the account earns 7% interest compounded monthly. (Round up to the cents place.)

Answer by math_tutor2020(3817)   (Show Source): You can put this solution on YOUR website!

Use the compound interest formula
A = P*(1+r/n)^(n*t)
3000 = P*(1+0.07/12)^(12*5)
3000 = P*1.417625
P = 3000/(1.417625)
P = 2116.215501
P = 2116.22

Answer: $2116.22

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