Question 1093808

Please help with this problem:How much money would you need to deposit today at 5% annual interest compounded monthly to have $20000 in the account after 9 years?  

Thanks!
<pre>Use the present value formula for $1: {{{matrix(1,3, P, "=", A/(1 + i/m)^(mt))}}}, with:
{{{P}}} = Present Value, or Principal invested, or INITIAL amount deposited (Unknown, in this case)
{{{A}}} = Accumulated amount, or future value ($20,000, in this case)
{{{i}}} = Annual Interest rate (5%, or .05, in this case)
{{{m}}} = Number of ANNUAL compounding periods (monthly, or 12, in this case)
{{{t}}} = Time, in years (9, in this case)

{{{matrix(1,3, P, "=", A/(1 + i/m)^(mt))}}} becomes: {{{matrix(1,3, P, "=", "$20,000"/(1 + .05/12)^(12 * 9))}}}, and then Present Value, or {{{highlight_green(matrix(1,3, P, "=", "$12,764.49"))}}}