SOLUTION: how much money should Sheila invest in an account that earns 8% annual interest compounded monthly in order to have $4,000 in 5 years.

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Question 171228: how much money should Sheila invest in an account that earns 8% annual interest compounded monthly in order to have $4,000 in 5 years.
Answer by jojo14344(1512) About Me  (Show Source):
You can put this solution on YOUR website!
Working Formula ----------> F=P%281%2B%28i%2Fm%29%29%5E%28mn%29
where ---> system%28F=FutureValue%2CP=Principal%2Ci=interest%2Cm=CoumpoundedPerYear%2Cn=years%29
Subst.
4000=P%281%2B%280.08%2F12%29%29%5E%285%2A12%29
4000=P%281.0067%29%5E60=P%281.49%29
cross%284000%292684.56%2Fcross%281.49%29=P%2Across%281.49%29%2Fcross%281.49%29
highlight%28P=2684.56%29, Answer
Thank you,
Jojo