You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of. 4 percent per month, how much will you have to deposit today?

PV = $8,447

Explanation:

Giving the following information:

Future value = $13,000

Number of months = 9*12 = 108

Interest rate = 0.4/100 = 0.004 compounded montlhy

To calculate the initial investment required, we need to use the following formula:

PV = FV / (1+i) ^n

PV = 13,000 / (1.004^108)

PV = $8,447