SOLUTION: How much money should be invested in an account that earns 9% interest, compounded monthly, in order to have $13,000 in 5 years? (Round your answer to two decimal places.) $

Question 1202016: How much money should be invested in an account that earns 9% interest, compounded monthly, in order to have $13,000 in 5 years? (Round your answer to two decimal places.)
$

Found 2 solutions by Theo, josgarithmetic:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
f = p * (1 + r) ^ n
at 9% compounded monthly and the money invested for 5 years, the formula becomes:
13,000 = p * (1 + .09/12) ^ (12 * 5)
solve for p to get:
p = 13,000 / ((1 + .09/12) ^ (12 * 5)) = 8,303.096082.

confirm by replacing p in the original equation with 8303.096082 and solving for f to get:
f = 8,303.096082 * (1 + .09/12) ^ (12 * 5) = 13,000.

Answer by josgarithmetic(39617) (Show Source): You can put this solution on YOUR website!
Monthly rate is percent per monthly compounding period.
Five years holds 60 of these periods.

How much to be invested to reach 13000 in that time?

and you can solve for x.
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