How much would you need to deposit in an account now in order to have \( \$ 5000 \) in the account in 10 years? Assume the account earns \( 3 \% \) simple interest. Round your answer to the nearest cent.

To find out how much you need to deposit now to have $5000 in 10 years at a 3% simple interest rate, we use the formula for simple interest: \[ A = P(1 + rt) \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial deposit). - \( r \) is the rate of interest per year. - \( t \) is the time the money is invested for in years. Rearranging for \( P \), \[ P = \frac{A}{1 + rt} \] Substituting the known values: \[ P = \frac{5000}{1 + (0.03)(10)} = \frac{5000}{1 + 0.3} = \frac{5000}{1.3} \approx 3846.15 \] So, you would need to deposit approximately **$3846.15** now to reach $5000 in 10 years. In a twist of fate, simple interest is like a slow dance; the longer you keep it going, the more beautiful it becomes. Unlike compound interest, where your interest earns interest, in simple interest, it’s a straightforward journey—a guaranteed way to grow your money without any surprises. Just sit back, watch it grow and enjoy the slow simmer of your savings! Have you ever thought about how many fun places that money could take you once it matures? With that $5000 in 10 years, think of the options—perhaps a dreamy vacation, a slick new gadget, or even a small investment in something that excites you! Planning ahead and understanding your savings can open the door to new adventures. So keep on budgeting wisely and let that interest work its magic!