document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1031195>Question 1031195</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much money should be deposited in an account paying 7.2% interest compounded monthly in order to have a balance of $8000 after 3 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #645951 by </B><A HREF=/tutors/aboutme.mpl?userid=Alan3354><B>Alan3354(69443)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Alan3354><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Alan3354><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=645951\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> How much money should be deposited in an account paying 7.2% interest compounded monthly in order to have a balance of $8000 after 3 years?<BR>\n" );
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document.write( "PV = present value<BR>\n" );
document.write( "FV = future value = 8000<BR>\n" );
document.write( "t = 36 months<BR>\n" );
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document.write( "FV = PV*(1 + r)^36<BR>\n" );
document.write( "7.2%/year = 0.6%/month<BR>\n" );
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document.write( "8000 = PV*(1 + 0.006)^36<BR>\n" );
document.write( "8000/PV = 1.006^36<BR>\n" );
document.write( "PV = 8000/(1.006^36)<BR>\n" );
document.write( "PV =~ $6450.044\r<BR>\n" );
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document.write( " </SPAN>\n" );
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