Michael wishes to give his son a savings bond that will

Last updated: 7/19/2022

Michael wishes to give his son a savings bond that will mature in 8 years. He would like the value of the savings bond to be $5,000 at maturity. If he can invest in a bond that has an annual interest rate of 4% compounded monthly, which of the following is the best approximation of the amount he should invest? (A) $3,200 (B) $3,350 (C) $3,500 (D) $3,650