Question

How much money should I save in an account paying 5% interest compounded monthly if I wanted to have $6000 in 6 months

Answer 1

$4,351.48

Explanation:

This is because if you take 6,000 and use the part over whole method, 6,000 x 100 = 600,000 divided bt 105.5 = 5,687.20, continue that with the same numbers, except you replace the part with the last answer you got.

6,000 after 6 months

5,687.20 after 5 months

5,390.72 after 4 months

5,109.68 after 3 months

4,843.30 after 2 months

4,590.81 after 1 month

4,351.48 as the initial deposit.