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16 March, 05:32

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

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  1. 16 March, 06:49
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    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
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