How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume the account earns 8% interest compounded monthly.
8% compounded monthly = 8/12 = 0.6667% per month.
15 years = 15*12 = 180 months
We want to know an initial balance B such that:
B(1.00667)^180 = $6,000
3.306921B = $6,000
Divide each side by 3.306921
B = $1,814.38
8% compounded monthly = 8/12 = 0.6667% per month.
15 years = 15*12 = 180 months
We want to know an initial balance B such that:
B(1.00667)^180 = $6,000
3.306921B = $6,000
Divide each side by 3.306921
B = $1,814.38