Question

How much would you need to deposit in an account now in order to have $5,000.00 in the account in 697 days?

Assume the account earns 5% simple interest.

You would need to deposit _____ in your account now.

Answer 1

Explanation:

To find out how much you need to deposit in an account now to have a certain amount after a certain number of days, you can use the formula:

P = F / (1 + r * t)

where:

P is the present value or the amount you need to deposit now.

F is the future value or the amount you want to have in the account after a certain number of days.

r is the annual interest rate, expressed as a decimal.

t is the number of years for which the money will be invested.

In this case, you want to have $5,000 in the account in 697 days, which is equivalent to 697 / 365 = 1.91 years. The annual interest rate is 0.0375. Plugging these values into the formula, we get:

P = 5000 / (1 + 0.0375 * 1.91)

Solving this equation, we find that you would need to deposit $4,921.15 in your account now to have $5,000 in the account in 697 days.