Question

You need $77,000 in 12 years. if you can earn .44 percent per month, how much will you have to deposit today?

Answer 1

To have $77,000 in 12 years with a 0.44% monthly interest rate, you would need to deposit approximately $41,777.09 today. This is calculated using the present value formula for compound interest.

Step-by-step explanation:

To determine how much needs to be deposited today to have $77,000 in 12 years with a monthly interest rate of 0.44%, the present value formula for compound interest needs to be used.

The formula for the present value compounded monthly is:

PV = FV / (1 + r)n

Where:

PV = Present Value

FV = Future Value ($77,000)

r = monthly interest rate (0.44% or 0.0044)

n = total number of months (12 years x 12 months/year = 144 months)

Plugging the values into the formula:

PV = $77,000 / (1 + 0.0044)144

Now we calculate the present value:

PV = $77,000 / (1.0044)144

PV = $77,000 / (1.843417)

PV = $41,777.09 approximately

Therefore, you would need to deposit approximately $41,777.09 today to have $77,000 in 12 years at a monthly interest rate of 0.44%.

Answer 2

The answer would be 14,583 dollars because you would have to divide 72000 by .44 and 12 in order to get the answer.