# Chapter 8 - Personal Finance - 8.4 Compound Interest - Exercise Set 8.4: 50

The amount of money that should be deposited now is $\$43,455$#### Work Step by Step This is the formula we use when we make calculations with compound interest.$A = P~(1+\frac{r}{n})^{nt}A$is the final amount in the account$P$is the principal (the amount of money invested)$r$is the interest rate$n$is the number of times per year the interest is compounded$t$is the number of years$A = P~(1+\frac{r}{n})^{nt}P = \frac{A}{(1+\frac{r}{n})^{nt}}P = \frac{\$500,000}{(1+\frac{0.07}{12})^{(12)(35)}}$ $P = \$43,455$The amount of money that should be deposited now is$\$43,455$

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