For the next two years, Walter and Beatrice Winetrout want to send $500 per month to their daughter in college. To make these payments, compute the amount that the Winetrouts should deposit today into an investment that will return 12% compounded monthly. Use Tables 23-2A and 23-2B or a calculator.​

Compounded Monthly

The process of calculating interest where the accrued interest is added to the principal sum each month, resulting in interest earned on interest.

Deposit Today

An action where money is placed into a bank account or investment at the current date.

Investment Return

The profit or loss on an investment over a specified period, represented as a percentage of the investment's initial cost.