# Suppose you want to end up with $5,000 in a bank account after 4 years earning a rate of 3.5% compounding monthly. How much would you have to initially invest?

##### 1 Answer

May 23, 2017

#### Explanation:

Annual interest is 3.5% so monthly this is

The time span is 4 years but the calculation cycle is monthly. Thus the time span is

Let the principle sum be

Divide both sides by