Answer: Marc should deposit $2766
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
A = $3500
r = 8% = 8/100 = 0.08
n = 2 because it was compounded 2 times in a year.
t = 3 years
Therefore,
3500 = P(1+0.08/2)^2 × 3
3500 = P(1+0.04)^6
3500 = P(1.04)^6
3500 = 1.2653P
P = $2766
