Question

Bobby would like to take a trip to Greece in 5 years. He will need $1,575 monthly while he is there and expects to remain there for 8 months. If money is worth 3.9% compounded monthly, how much will Bobby need to deposit now in order to make his trip to Greece become a reality? Assume he will need the money at the BEGINNING of each month.

Answer 1

The amount Bobby will need at the start of his trip is $12,458.06. In order for his account to have that balance in 5 years, ...
.. he must deposit $10,254.17 now.