how much must i deposit today so that i can have 4700 in tow years time if the bank pays 5% compound interest yearly
Let P=amount deposited today,
R=interest rate at 5% = 1.05
then
PR^2 = 4700
P=4700/(1.05²)
=4700/1.1025
R=interest rate at 5% = 1.05
then
PR^2 = 4700
P=4700/(1.05²)
=4700/1.1025