Answer
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 $\$43,455$
