# maths

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How much would you need to deposit in an account now in order to have \$20,000 in
the account in 4 years? Assume the account earns 5% interest.

• maths -

Is it compounded Daily, Monthly, or
Annualy? Since the compounding frequency is not given, I'll assume
simple Interest:

P = Po + I.
P = Po + Po*r*t = \$20,000.
Po + Po*0.05*4 = 20,000
Po + 0.2Po = 20000
1.2Po = 20000
Po = \$16,666.67 = Initial deposit.

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