+8 June Cleaver needs $2,000 in 7 years’ time so she can enroll in a review course in mathematics offered by Algonquin College. She can earn 9% compounded monthly at a small financial institution. How much must June deposit now to have $2,000 in 7 years?
+36916 9 % annual interest compounded monthly is .09/12 = .0075 % periodic interest
7 years is 7 * 12 = 84 periods
2000 is future value
2000 = d * ( 1+.0075)84 where d = initial deposit amount
d = 1067.69 dollars initial deposit
