Question

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 2% interest compounded monthly.

Answer 1

$2456.59.

Explanation:

A = D(1 + 0.02/12)^(10*12)

3000 = D * 1.0016667^120

3000 = D * 1.2212043

D = 3000 / 1.2212043

= 2456.59