Final answer:
To achieve his objective of having $4,762 by March 19th, 2023 with an interest rate of 2.3%, Absalom would need to deposit approximately $4,610.62 today.
Step-by-step explanation:
To calculate how much Absalom would need to deposit today to achieve his objective, we can use the formula for compound interest:
Future Value = Principal x (1 + Interest Rate)^n
In this case, Absalom wants to have $4,762 by March 19th, 2023, and the interest rate is 2.3%. Since the time between February 15th, 2023 and March 19th, 2023 is 32 days, we will use the number of days as the exponent (n) in the formula.
Let's calculate:
Future Value = Principal x (1 + 0.023)^32
$4,762 = Principal x (1.023)^32
To solve for Principal, we divide both sides of the equation by (1.023)^32:
Principal = $4,762 / (1.023)^32
Using a calculator, the value of Principal comes out to be approximately $4,610.62.