obart16
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Suppose you want to save $5000 to put towards remodeling your house in 18 months. You found a bank whose interest rate for savings accounts is 4.5% compounded monthly, but you are unsure of how much to invest to have $5000 saved in 18 months.

Using the compound interest formula, how much should you invest in order to have $5000 saved in 18 months?