Question

How much would you need to deposit in an account now in order to have $3000 in the account in 15 years? Assume the account earns 3% interest compounded monthly.

Answer 1

Answer:

Principal = Total ÷ (1 + Rate)^years

That formula is found here: http://www.1728.org/compint2.htm

Principal = 3.000 / (1.03) ^ 15

Principal = 3.000 / 1.5579674166

Principal = $1,925.59

Step-by-step explanation: