Question

How much would you need to deposit in an account now in order to have $2,000.00 in the account in 13

months?

Assume the account earns 4.01% simple interest.
in your account now.

You would need to deposit _____ in your account now.

Answer 1

$1916.73

Explanation:

`I=Prt=P(0.0401)(13/12) \\ \\ \implies P+P(0.0401)(13/12)=2000 \\ \\ P=(2000)/(1+(0.0401)(13/12)) \approx \$1916.73`