How much would you need to deposit in an account now in order to have $6000 in the account in 10 years? Assume the account earns 6% interest compounded monthly.
We start with a balance of B. We want to know:
B(1.06)^10 = 6000
B(1.79084769654) = 6000
Divide each side of the equation by 1.79084769654 to solve for B
B = 3,350.37
We start with a balance of B. We want to know:
B(1.06)^10 = 6000
B(1.79084769654) = 6000
Divide each side of the equation by 1.79084769654 to solve for B
B = 3,350.37