Given:
The final amount is given as A = ₱5,000.
The number of years is T = 4.
The number of times compounded is each month, n = 12 per year.
The rate of interest is r = 12% = 0.12.
The objective is to find the amount to be deposited.
Explanation:
The general formula to calculate the principal amount is,
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ P=\frac{A}{(1+\frac{r}{n})^{nt}}\text{ . . . . . . .(1)} \end{gathered}[/tex]On plugging the given values in equation (1),
[tex]\begin{gathered} P=\frac{5000}{(1+\frac{0.12}{12})^{12(4)}} \\ =\frac{5000}{(1+0.01)^{48}} \\ =3101.302025\ldots\text{..} \\ =3101.3 \end{gathered}[/tex]Hence, the amount to be deposited is ₱3101.3
