SOLUTION: How much would you need to deposit in an account now in order to have $6000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.

Question 1195157: How much would you need to deposit in an account now in order to have $6000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.

Answer by josgarithmetic(39620) (Show Source): You can put this solution on YOUR website!
-----if for annually

MONTHLY,
months
and monthly rate would be

.
.
---
---

N, amount to invest now today
0.03, yearly interest rate

5, how many years the N amount will be invested

The number of monthly compounding periods is .

What is monthly interest rate? .

If N were invested for just one year, then BALANCE would be ; but your example is for 60 months or nearly enough to 60 compounding periods.
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