Answer:
29365
Explanation:
Compound interest means that the interest you earn each year is added to your principal, so that the balance doesn't merely grow, it grows at an increasing rate, therefore John needs to put aside today $29.365 as a compound interest rate of 8% will yield as follows:
Year = Principal+interest=New Balance/Principal
Year 1: $29,365 + $2,396 = $31,761
Year 2: $31,761 + $2,591 = $34,352
Year 3: $34,352 + $2,803 = $37,156
Year 4: $37,156 + $3,031 = $40,188
Year 5: $40,188 + $3,279 = $43,467
Year 6: $43,467 + $3,546 = $47,014
Year 7: $47,014 + $3,836 = $50,850
Year 8: $50,850 + $4,149 = $55,000
