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Suppose your retirement goal is to accumulate $500 in 4.5 years. How much do you need...

Suppose your retirement goal is to accumulate $500 in 4.5 years. How much do you need to deposit in the bank today to meet your goal if the bank offers an simple interest rate 4.15%.
$

You should set your calculator for at least four decimal places of accuracy.

Place your answer in dollars and cents.

Do not include a dollar sign or comma in your answer

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Answer #1

Accumulated Sum = $500
Simple Interest Rate = 4.15%
Period = 4.50 years

Amount Deposited * (1 + Simple Interest Rate * Period) = Accumulated Sum
Amount Deposited * (1 + 0.0415 * 4.50) = $500
Amount Deposited * 1.18675 = $500
Amount Deposited = $421.32

So, you need to deposit $421.32 in the bank today to meet your goal.

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