SOLUTION: How much would you need to deposit in an account now in order to have $3000 in the account in 10 years? Assume the account earns 3% interest compounded monthly.

Use the formula for discretely compounded account 

      f = p * (1 + r) ^ n


where f is the future value
      p is the principal (the deposited amount)
      r is the interest rate per time period, presented as a decimal
      n is the number of time periods.


Your time periods are months.


f = 3000.
r = 0.03/12.
n = 10 years * 12 = 120 months.


Formula becomes 3000 = ,  which gives

    p =  = 2223.29  to the nearest cent.    ANSWER