Write an equation for the future value of the deposit X in 8 years, compounded daily


     = 2400


Find X

    X =  =  1814  dollars  (rounded).    ANSWER

Larger wants to take a trip in 8 years. She needs 2,400$. How much should she deposit into an account that pay 3.5% interest daily to meet her goal, round to nearest dollar

The formula for an ORDINARY ANNUITY need to be used here. This is:
, or , or , where: 
 PMT = PAYMENT/DEPOSIT to be made throughout the investment period annuity (UNKNOWN, in this case)
FVoa = FUTURE VALUE of the annuity ($2,400, in this case)
   r = interest RATE, per period(, in this case) <=== Note that 360 is NORMALLY used
                                                                     to represent the number of days
                                                                     in a year. 365 can also be used.
   n = total NUMBER of investment periods (8 * 360 = 2,880, in this case)


 ---- Substituting $2,400 for FVoa,  for r, and 2,880 for n

Payment/Amount to be made/deposited, daily , or PMT = 0.722144255, rounded to $0.72.


SIDE NOTE:
A deposit of $0.72 per day for 360 days per year, at a  (3.5% annual) interest rate, for 2,880 days
(8 years) = $2,392.87, which falls SHORT of her $2,400 goal by $7.13 ($2,400 - $2,392.87). However, a daily deposit
of $0.722144, rounded from $0.722144255, will certainly HIT the $2,400 MARK.

Another SIDE NOTE:
Above, I rounded off to the NEAREST cent, not nearest DOLLAR. So, in reality, rounding off $0.72244255 to the nearest
DOLLAR gives us $1, per day, which will be more than enough to reach her TARGET of $2,400 in 8 years, or 2.880 days. As
a matter of fact, $1 per day will yield $3,323.44 in 8 years (2,880 days), $923.44 more than her target goal of $2,400.

SELAH!!