To determine how much you need to deposit today to have $60,000 in 8 years with an interest rate of 9%, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future amount you want ($60,000)
P = the principal amount (the initial deposit we want to find)
r = the annual interest rate (9% or 0.09 as a decimal)
n = the number of times that interest is compounded per year (assuming annually, so n = 1)
t = the number of years (8 years)
Now, plug in the values:
$60,000 = P(1 + 0.09/1)^(1*8)
$60,000 = P(1 + 0.09)^8
$60,000 = P(1.09)^8
Now, solve for P:
P = $60,000 / (1.09)^8
P ≈ $31,527.47
So, you would need to deposit approximately $31,527.47 in the bank today to have $60,000 in 8 years, assuming an interest rate of 9% compounded annually.