Compute the amount of money to be set aside today to ensure a future value of $2,300 in 1 year if the interest rate is 6.5% annually, compounded annually.
the amount of money to be set aside is $ . (round to the nearest cent as needed.)

2159.62

Step-by-step explanation:

Given that future value of 2300 dollars after a period of 1 year

Interest rate =6.5%

Period = 1 year

Compounded = annually

Hence we have the final value as

it's equivalent, so we can say that its equal.

let's call the denominator x and the numerador is 18 less then denominator, x - 18.

multiply

2.x = 5.(x - 18)

2x = 5x - 90

90 = 5x - 2x

90 = 3x

x = 90/3

x = 30

so: