How much would you need to deposit in an account now in order to have $6000 in the account in 15 yea

Discussion in 'Calculator Requests' started by math_celebrity, Mar 28, 2019.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    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
     

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