Question

Tuha needs $1,850 in eight months for her college tuition. How much money should she deposit lump sum in an account paying 8.2% compounded monthly to achieve that goal?​

Answer 1

Step-by-step explanation:

let us consider she deposited money x

monthly interest 8%

$a = p {(1 + \frac{r}{100 })}^{n}$

Case 1

Total money

$1850 = x {(1 + \frac{8.2}{100} )}^{8}$

$1850 = x {(1.082)}^{8}$

$x = \frac{1850}{ {(1.082)}^{8} }$

$x = 984.812704$

dollers

case 2

if she want total money in interest

$1850 + x = x {(1.082)}^{8}$

$1.8785x - x = 1850$

$x = 1850 \div 0.8785$

$2105.86227$

in dollars