How much money should be invested in an account that earns 8% annual interest compounded monthly in order to have $4,000 in 5 years?

We are asked to find the amount of money which must be
invested to have $4000 in an account at the end of five years if the annual interest
rate is 8% compounded monthly.

We will use the following
formula:

=>A(t) = P( 1 + r/n)
^nt

P = principal

A = the
amount after t years

r = the investment
rate

n= number of times interest compounds per
year

t = number of
years

=>  A(t) = P( 1 + r/n)
^nt

=>  4000 = P ( 1 +
.08/12)^12(5)

=>  4000 =
1.4898P

=>   2684.92 =
P

The amount to invest is
2684.92.