How much money should be deposited today in an account that earns
7.5 %
compounded monthly so that it will accumulate to
$ 14 comma 000
in three years?
PV ==FV / [1 + R]^N, where PV==Present value, FV==Future value, R==Interest rate, N==Number of periods.
PV ==14,000 / [1 + 0.075/12]^(3*12)
==14,000 / [1 + 0.00625]^36]
==14,000 / [1.00625]^36
==14,000 / 1.2514461355
==$11,187.06 - what must be deposited now to grow to $14,000 in 3 years at 7.5% comp. monthly.
PV ==FV / [1 + R]^N, where PV==Present value, FV==Future value, R==Interest rate, N==Number of periods.
PV ==14,000 / [1 + 0.075/12]^(3*12)
==14,000 / [1 + 0.00625]^36]
==14,000 / [1.00625]^36
==14,000 / 1.2514461355
==$11,187.06 - what must be deposited now to grow to $14,000 in 3 years at 7.5% comp. monthly.
