In January, Dana Blakely decided to donate $2,500 to the Riverfront Humane Society. For income tax purposes, she will not make the donation until next December. If Dana can earn 12% compounded monthly, how much must she invest in January to have $2,500 in 11 months? (Use Tables 16-1A&B or 16-2A&B or a calculator.)

Question

In January, Dana Blakely decided to donate $2,500 to the Riverfront Humane Society. For income tax purposes, she will not make the donation until next December. If Dana can earn 12% compounded monthly, how much must she invest in January to have $2,500 in 11 months? (Use Tables 16-1A&B or 16-2A&B or a calculator.)​

Perla Martos · Accepted Answer

Final Answer : 0.12 ¸ 12 = 0.01; 11 months;$2,500 ´ 0.89632 = $2,240.80 Invest in January​

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