SOLUTION: 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?

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Question 970313: 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?
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
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?
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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
For given problem:
P=TBD
r=.03
n=365
t=15
A=2500
..
2500=P(1+.03/365)^365*15
2500=P(1+.00008219)^5475
P=2500/(1.00008219)^5475
P≈1594
How much money must I deposit today? $1594