# 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? Algebra -> Algebra -> Customizable Word Problem Solvers -> Finance -> 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?      Log On

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 Question 312093: 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 solver91311(16885)   (Show Source): You can put this solution on YOUR website! Is the Future Amount, , of an investment of at an annual rate of compounded times per year for years. You want to know so that when , , and Substitute the values and do whatever arithmetic is readily apparent: Multiply through by Take the log of both sides (any base, doesn't matter): Apply the logarithm rules: Which is to say: Then a little calculator work: John