SOLUTION: A mutual fund pays 3% compounded monthly. How much should I invest now so that 12 months from now I will have $3500 in the account?
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Question 813433: A mutual fund pays 3% compounded monthly. How much should I invest now so that 12 months from now I will have $3500 in the account?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
A mutual fund pays 3% compounded monthly. How much should I invest now so that 12 months from now I will have $3500 in the account?
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If you mean 3% per year --> 0.0025% per month
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FV = PV*(1 + 0.0025)^t t in months
3500 = PV*1.0025^12
PV = 3500/(1.0025^12)
Just calculator work left
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