SOLUTION: How much money should be deposited today in an account that earns 10.5% compounded monthly so that it will accumulate to $22,000 in four years?
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Question 316660: How much money should be deposited today in an account that earns 10.5% compounded monthly so that it will accumulate to $22,000 in four years? Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! How much money should be deposited today in an account that earns 10.5% compounded monthly so that it will accumulate to $22,000 in four years?
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Compound interest formula:
Where
A is amount after time t
P is the principal
i is the interest
n is number of times compounded
t is time (in years)
.
Plugging in what was given:
$19,816.19 = P
