Question

If you want get 60000 in 8 years how much do you need to deposit in the bank today if the account pays an interest rate of 9%

Answer 1

FV = PV x (1 + r)^n

where:

FV = future value

PV = present value (the amount to be deposited today)

r = interest rate per period (in this case, per year)

n = number of periods (in this case, 8 years)

Plugging in the given values, we get:

$60,000 = PV x (1 + 0.09)^8

Simplifying this equation:

PV = $60,000 / (1 + 0.09)^8

PV = $60,000 / 1.999^8

PV = $60,000 / 3.058

PV = $19,602.68

Therefore, the amount that needs to be deposited in the bank today to accumulate $60,000 in 8 years with an interest rate of 9% is $19,602.68.

I hope this helps.