Question 1088801
Question:
How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume the account earns 6% interest compounded monthly.
 
Solution:
The compound interest equation
F=P(1+i)^n
F=6000,
i=0.06/12=0.005 per month
n=15*12 months/year = 180
P=F/(1+i)^n
=6000/(1.005^180)
=2444.89