document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=970313>Question 970313</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If my bank account returns 3% but compounds interest daily how much money must I deposit today so that I may have $2,500 in fifteen years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #593367 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=593367\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If my bank account returns 3% but compounds interest daily how much money must I deposit today so that I may have $2,500 in fifteen years?<BR>\n" );
document.write( "***<BR>\n" );
document.write( "Compound interest formula: A=P(1+r/n)^n*t, P=initial investment, r=interest rate, n=number of compounding periods per year, A=amt after t-years<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=TBD<BR>\n" );
document.write( "r=.03<BR>\n" );
document.write( "n=365<BR>\n" );
document.write( "t=15<BR>\n" );
document.write( "A=2500<BR>\n" );
document.write( "..<BR>\n" );
document.write( "2500=P(1+.03/365)^365*15<BR>\n" );
document.write( "2500=P(1+.00008219)^5475<BR>\n" );
document.write( "P=2500/(1.00008219)^5475<BR>\n" );
document.write( "P&#8776;1594<BR>\n" );
document.write( "How much money must I deposit today? $1594 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );