Tori needs to make some house repairs in three years that will cost $9,000. She has some money in an account earning 9% annual interest. How much money needs to be in the account today so she will have enough to pay for the repairs

She needs to have approximately $6950 on that account.

Step-by-step explanation:

Since the account has an interest rate of 9% annually, then it's compounded and the earnings can be found by the following expression:

Where M is the final amount, C is the initial amount, r is the interest rate and t is the time elapsed in years.

She needs the money in 3 years, therefore t = 3. Applying this to the problem we have:

She needs to have approximately $6950 on that account.

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