Question

Julie's parents' 25th anniversary is in 4 years. She'd like to give her parents a vacation package for their anniversary. She anticipates the vacation package will cost her $2,200. An account at her bank pays 4% per year compounded monthly. How much does she need to deposit today in this account, so that she can buy the package deal for her parents' anniversary

Answer 1

She needs to deposit $352.00

Step-by-step explanation:

Because simple Interest is solved using Principle($2,200)× Rate(4%) × Time(4 years) divided by 100