How much would you need to deposit in an account now in order to have \( \$ 3000 \) in the account in 5 years? Assume the account earns \( 8 \% \) interest compounded annually. Round your answer to the nearest cent.

To find out how much you need to deposit now to have $3000 in 5 years at an 8% interest rate compounded annually, you can use the formula for present value: \[ PV = \frac{FV}{(1 + r)^n} \] where \(PV\) is the present value, \(FV\) is the future value ($3000), \(r\) is the interest rate (0.08), and \(n\) is the number of years (5). Plugging in the values: \[ PV = \frac{3000}{(1 + 0.08)^5} \approx \frac{3000}{1.4693} \approx 2040.47 \] So, you would need to deposit approximately **$2040.47** now. To visualize this, think of your money working out like a savings superhero! You drop your $2040.47 into the account today, and with the power of 8% interest compounding annually, it transforms into $3000 after five years, just like a caterpillar becoming a butterfly. Just be sure not to open that account until it’s time to use that money—it’s a long-term job!