SOLUTION: How much money must you deposit into a savings account that has an annual 3% interest rate to earn $100 in 3 years

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Question 560483: How much money must you deposit into a savings account that has an annual 3% interest rate to earn $100 in 3 years
Answer by TutorDelphia(193) About Me  (Show Source):
You can put this solution on YOUR website!
F=P%2A%281%2Br%29%5Et
when
F = Future Value (Initial deposit plus 100)
I = Interest (100 in this case)
P = principle/initial deposit (unknown)
r = interest rate (3%=.03)
t = number of years invested (3)
P+100=P*(1+.03)^3
cube 1.03
P+100=P*1.0927
subtract 1P from both sides
100=P*0.0927
divide both sides by 0.0927
1078.75=P