Question 1098353: How much would you need to deposit in an account now in order to have $4000 in the account in 10 years? Assume the account earns 7% interest compounded monthly. Round your answer to 2 decimal places and separate the thousands by a comma.
Answer by jorel1380(3719)   (Show Source):
You can put this solution on YOUR website! In order to have $4,000 in 10 years, at 7% compounded monthly, you would need:
4000=P*(1+0.005833)^(10*12)
4000=P*(1.005833333)^120
ln 4000=ln P + 120 ln 1.00583333333
ln P=7.596083401529248873292827265543
e^ln P=P=e^7.596083401529248873292827265543=1990.385
P=$1,990.385 needs to be deposited, initially
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