The president of a growing engineering firm wishes to give each ofthe35employees a holiday bonus. How much is needed to invest monthly for a year at aneffectiveannual interest rate of 8%, compounded monthly so that each employee will receive a $1,000 bonus

The amount to invest : A = P (1+r) ^n

$35000 = P (1+0.0067) ^12

$35000 / (1.0067) ^12 = P

P = $32304.81 is the amount to invest

Explanation:

A is the total amount, final answer = $1000*35 = $35000

P is the amount to invest?

R is the rate = 8% / 12 = 0.0067

N = years * 12 = 12 months

compounded monthly = 12