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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?

 Apr 21, 2022

Best Answer 

 #2
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+1

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.

 Apr 21, 2022
 #1
avatar+115 
-5

I dont really know srry

 Apr 21, 2022
 #2
avatar
+1
Best Answer

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.

Guest Apr 21, 2022

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