# Use the present value formula to determine the amount to be invested​ now, or the present value neededThe desired accumulated amount is \$40,000 after 12 years invested in an account with 2.2​% interest compounded monthly.The amount to be invested​ now, or the present value​ needed, is ​\$__Round to the nearest cent as needed

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Use the present value formula to determine the amount to be invested​ now, or the present value needed

The desired accumulated amount is \$40,000 after
12 years invested in an account with 2.2​% interest compounded monthly.

The amount to be invested​ now, or the present value​ needed, is ​\$__

Round to the nearest cent as needed

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Step 1

Recall the following fact. help_outlineImage Transcriptionclosent Compound Amount = P1+ where P is the Principal amount i is the annual interest rate n is the number of years t is the number of times compounded per year fullscreen
Step 2

Substitute the given values and compute the co... help_outlineImage TranscriptioncloseCompound Amount = \$40,000, n =12, t = 12 and i = 2.2% nt = P Compound Amount 12x12 0.022 40000 P 1 12 40000 P 12x12 0.022 1+ 12 40000 144 12.022 12 = \$30,726.37 fullscreen

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