SOLUTION: How much money would you need to deposit now (Principal) in order to have $6,000 in your account for a vacation in 8 years? Assume the account earns 6% interest compounded monthly.

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Question 1186026: How much money would you need to deposit now (Principal) in order to have $6,000 in your account for a vacation in 8 years? Assume the account earns 6% interest compounded monthly. Round your answer to the nearest hundredths place.

Found 2 solutions by ikleyn, Alan3354:
Answer by ikleyn(52781)   (Show Source):
You can put this solution on YOUR website!
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How much money would you need to deposit now (Principal) in order to have $6,000 in your account for a vacation in 8 years?
Assume the account earns 6% interest compounded monthly. Round your answer to the nearest hundredths place.
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6000 = = . From this equation, find the Principal P P = = 3717.14 dollars. ANSWER

Solved.

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For all details and explanations, look into these two lessons
    - Compounded interest percentage problems
    - Problems on discretely compound accounts
in this site, and learn the subject from there.

After reading these lessons, you will tackle such problems on your own without asking for help from outside.

Also, you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lessons are the part of this online textbook under the topic "Logarithms".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

Happy learning (!)

Answer by Alan3354(69443)   (Show Source):
You can put this solution on YOUR website!
=
Just calculator work from here.