How much would you need to deposit in an account now in order to have $4000 in the account in 5 years?

Question

Assume the account earns 5% interest compounded monthly.

when I did the question myself I got:

4000=P(1+0.05)^(5)(12) for the equation and the work I did was:

4000=P(1+1/20/12)^60

4000=P(1+1/240)^60

4000=P(241/240)^60

4000*240^60/241^60=P

and when I did the work on the other side with all the numbers I got:

P= 3116.821561 for the answer but I do not know if I am correct with the answer I got for the question

Answer 1

4000=P(1+r/n)^nt where n= number of compounding periods annually = 12, t=years = 5

P = amount needed to get 4000 in 5 years compounded 12 times a year, r =annual interest rate =.05 =5%

4000=P(1+.05/12)^12(5)

4000 = P(1.0041666...)^60 = P(12.05/12)^60

P= 4000/(12.05/12)^60= about

$3116.82 rounded to nearest cent

Answer 2

$3116.82 is correct.