Question

How much money should be deposited today in an account that earns 6% compounded monthly so that it will accumulate to $15,000 in three years?

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The amount of money that should be deposited is $ (Round up to the nearest cent.)

Answer 1

Explanation:

FV = PV ( 1 +i)^n

FV = Future Value = $ 15 000

PV = ??

i = decimal interest per period = .06/12

n = number of periods = 12 x 3 yrs = 36

$ 15000 = PV ( 1 + .06/12)^36

PV =$ 12534.67