3) How much money should be invested at 8% per year so that after 2 years...

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3) How much money should be invested at 8% per year so that after 2 years the amount will be $10,000 when the interest is com

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Answer 1

Answer #1

Answer of Part 3:

Annual Interest Rate = 8.00%

Monthly Interest Rate = 8.00% / 12
Monthly Interest Rate = 0.6667%

Period = 2 years or 24 months

Future Value = Present Value * (1 + r) ^n
$10,000 = Present Value * (1 + 0.006667) ^ 24
$10,000 = Present Value * 1.172897
Present Value = $10,000 / 1.172897
Present Value = $8,525.90

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Answer 2

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