<PRE><B>Question 1080926</B>
how much must you deposit in an account that pays 8% interest,  compounded monthly,  to have a balance of $1000  after three years
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FV = Future value
PV = Present value
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3 years = 36 months, the compounding period.
8% per year = 8/12 % per month
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FV = PV*(1 + 0.08/12)^(3*12)
1000 = PV*1.00666667^36
PV = 1000/(1.00666667^36)
PV =~ $787.25
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Sounds like a bad deal.
OK, not a bad deal, just a waste of time.
$213 would last about 3 minutes at the free clinic.</PRE>