Final answer:
To reach a savings goal of $660 in 4 years with a 3% interest rate, you would need to invest approximately $577.42 today.
Step-by-step explanation:
To calculate how much you need to invest today to reach your savings goal in the future, you can use the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate)^Number of Periods
In this case, you want to find the present value (the amount you need to invest today), so you can rearrange the formula: Present Value = Future Value / (1 + Interest Rate)^Number of Periods
Using the given values: Future Value = $660, Interest Rate = 3% = 0.03, Number of Periods = 4 years.
Present Value = $660 / (1 + 0.03)^4 = $577.42
Therefore, you would need to invest approximately $577.42 today to reach your savings goal of $660 in 4 years, assuming a 3% interest rate.