SOLUTION: 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?

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Question 1031195: 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?
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
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?
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PV = present value
FV = future value = 8000
t = 36 months
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FV = PV*(1 + r)^36
7.2%/year = 0.6%/month
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8000 = PV*(1 + 0.006)^36
8000/PV = 1.006^36
PV = 8000/(1.006^36)
PV =~ $6450.044