Answer:
$ 28,665.11 must be deposited today into the account.
Step-by-step explanation:
Given that there is an account with monthly compounding and an APR of 4%, to determine how much must be deposited today into the following account in order to have $ 35,000 in 5 years, the following calculation must be performed:
X x (1 + 4/12) ^ 5x12 = 35,000
X x (1 + 0.333) ^ 60 = 35,000
X x (1,333) ^ 60 = 35,000
X x 1.220999 = 35,000
X = 35,000 / 1.22099
X = 28,665.11
Thus, $ 28,665.11 must be deposited today into the account.
