Answer:
The amount that must be deposited is $ 19973.87.
Step-by-step explanation:
We have a relation between future value present value as:
F= P [tex](1 +\frac{r}{n} )^{nt}[/tex]
F=future value
P=present value
r=rate (as a decimal)
n=number of compounding periods per year
t=number of years
Now,
assume rate as 8%
35000= P [tex](1+\frac{0.08}{12} )^{12*7}[/tex]
or, 35000= P × [tex]1.0067^{84}[/tex]
or, P = [tex]\frac{35000}{1.7522}[/tex]
or, P = $ 19973.87
So you must deposit $ 19973.87 today.
