Final answer:
To calculate the amount Jenna's dad should invest today to cover her rent for six years at $800 per month with a 3.50% monthly compounded interest rate, we use the present value formula for an annuity due. The exact amount requires application of the given values in this formula, which is best computed using a financial calculator.
Step-by-step explanation:
To determine how much Jenna's dad should invest into a savings account today to pay for Jenna's rent for the next six years with rent at $800 payable at the beginning of each month and the account earning 3.50% compounded monthly, we need to calculate the present value of an annuity due. Since the rent is paid at the beginning of each period, we're specifically looking at an annuity due scenario, not an ordinary annuity.
Using the formula for the present value of an annuity due:
PV = PMT * (((1 - (1 + r)^-n) / r) * (1 + r))
Where PV is the present value, PMT is the monthly rent payment, r is the monthly interest rate (3.50%/12), and n is the total number of payments (6 years * 12 months).
To find out the exact amount Jenna's dad should invest, this formula needs to be applied with the given numbers. Without a financial calculator or software, this calculation would be complex and lengthy to do manually.