Question

SOLUTION: How much must you deposit into an account that pays 8.75% annual interest, compounded monthly, to have a balance of $1000 after one year?

Answer 1

$917

Explanation:

Let the money be $x

x×(1+(8.75%/12))^(12)=1000

x=916.5097877016

x=917(cor.to 3 sig.fig.)