SOLUTION: How much money should be deposited today in an account that earns 6.5% compounded monthly so that it will accumulate to $13,000 in three​ years? The amount of money that shoul

Algebra ->  Equations -> SOLUTION: How much money should be deposited today in an account that earns 6.5% compounded monthly so that it will accumulate to $13,000 in three​ years? The amount of money that shoul      Log On


   

Question 1176317: How much money should be deposited today in an account that earns 6.5% compounded monthly so that it will accumulate to $13,000 in three​ years?
The amount of money that should be deposited is ​$__.
(Round up to the nearest​ cent.)
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount 13000
P= principal = 
r= annual rate = .065
n= periods per year = 12
t= years = 3

13000+=+P%281%2B.065%2F12%29%5E%2836%29
     P = $10,702.48  (rounded to nearest cent)

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