Question 1195275
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How much would you need to deposit in an account now in order to have $3000 
in the account in 10 years? 
Assume the account earns 3% interest compounded monthly.
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<pre>
Use the formula for discretely compounded account 

      f = p * (1 + r) ^ n


where f is the future value
      p is the principal (the deposited amount)
      r is the interest rate per time period, presented as a decimal
      n is the number of time periods.


Your time periods are months.


f = 3000.
r = 0.03/12.
n = 10 years * 12 = 120 months.


Formula becomes 3000 = {{{p*(1 + 0.03/12)^120}}},  which gives

    p = {{{3000/(1+0.03/12)^120}}} = 2223.29  to the nearest cent.    <U>ANSWER</U>
</pre>

Solved.


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To see many other similar &nbsp;(and different) &nbsp;solved problems on compounded interest accounts, &nbsp;look into the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> 

in this site.


Learn the subject from there.