If you want to have $4,200 in 29 months,how much money must you put in a savings account today? Assume that the savings account pays 12% and it is compounded monthly (round to nearest $1).

Question

Quizplus · Accepted Answer

To find the present value, use the formula for compound interest: $ PV = \frac{FV}{(1 + r/n)^{nt}} $. Here, $ FV = 4200 $, $ r = 0.12 $, $ n = 12 $, and $ t = 29/12 $. Plugging these values in, the present value is approximately $3,147.

If You Want to Have $4,200 in 29 Months,how Much