Question

What principal you have to deposit in a 4.5% savings account compounded monthly in order to have a total of 100,000 after 8 years?

Answer 1

Answer: Please use this method
Periods N = 8 years x 12 = 96 periods
The interest rate I = 4.5 % per year, compounding, divided by 12 = 0.375 % for each period.
Present value PV = minus $ 6,981.46
Future value FV = $ 10,000.20

Explanation: