SOLUTION: How much money would you need to deposit today at 5% annual interest compounded monthly to have $20000 in the account after 9 years?

Question 973955: How much money would you need to deposit today at 5% annual interest compounded monthly to have $20000 in the account after 9 years?
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
How much money would you need to deposit today at 5% annual interest compounded monthly to have $20000 in the account after 9 years?
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9 yrs = 108 months
5% annual = (5/12)% per month = 5/1200
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FV = PV*(1 + 5/1200)^108 = 20000
PV = 20000/(1 + 5/1200)^108
PV = $12,764.49
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