The president of a growing engineering firm wishes to give each ofthe35employees a holiday bonus. How much is needed to invest monthly for a year at aneffectiveannual interest rate of 8%, compounded monthly so that each employee will receive a $1,000 bonus

The amount to invest : A = P(1+r)^n

$35000 = P ( 1+0.0067)^12

$35000/(1.0067)^12 = P

P = $32304.81 is the amount to invest

Explanation:

A is the total amount, final answer = $1000*35 = $35000

P is the amount to invest ?

R is the rate = 8% /12 = 0.0067

N = years * 12 =12 months

compounded monthly = 12