How much would you need to deposit in an account now in order to have $6000 in the account in 10 years? Assume the account earns 5% interest compounded monthly. Question Help DVideo 1 D Video 2 Submit Question
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
![### Compound Interest Calculation
**Question:**
How much would you need to deposit in an account now in order to have $6000 in the account in 10 years? Assume the account earns 5% interest compounded monthly.
**Answer Field:**
- [Input Box for Dollar Amount] $
#### Learning Resources:
- [Video 1]
- [Video 2]
[Submit Question Button]
### Explanation:
This question requires an understanding of compound interest, particularly the formula for calculating the present value of a future sum of money when interest is compounded monthly. The formula you can use is:
\[ PV = \frac{FV}{{(1 + \frac{r}{n})^{nt}}} \]
Where:
- \( PV \) = Present Value (the amount you need to deposit now)
- \( FV \) = Future Value ($6000)
- \( r \) = annual interest rate (5% or 0.05)
- \( n \) = number of times interest is compounded per year (12 for monthly)
- \( t \) = number of years the money is invested (10 years)
By plugging in the values, you can calculate the present value needed.
### Graphs/Diagrams:
(This section will display any relevant graphs or diagrams if included in the educational material to help illustrate the concept of compound interest over time. Since there are no graphs in this specific case, this is just a placeholder explanation.)
**Instructions:**
1. Enter the calculated amount in the input box.
2. Click "Submit Question" to check your answer.
This resource provides a practical application of the compound interest formula, helping students understand how their investments grow over time and how much they need to invest today to reach a financial goal in the future.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd884bfb-f597-4e0f-84ff-0bb4284fea4d%2Fdb1e6e1f-0cc5-4ffc-9c2b-b55bb737eddc%2F0erjo5g_processed.jpeg&w=3840&q=75)
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