maths
posted by colin .
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.

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.
Respond to this Question
Similar Questions

College level math
Suppose you deposit $100 in an account that earns 0.5% each month. You make no withdrawals from the account and deposit no more money into the account. How much money will you have in the account after 4 years? 
finance
You deposit 172 dollars in an account every year for 9 years that earns 9 percent annual interest. How much money is in your account 9 years from now? 
math
how much money would have to be invested in an account at 3.98% annual interset to achieve a balance of 25,000 in 17 years if a. The account pays simple interest b. the account compound interest qrtly c. the account compounds interest … 
math
How much would you need to deposit in an account now in order to have $20,000 in the account in 4 years? 
math
Suppose you start saving today for a $30,000 down payment that you plan to make on a house in 8 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you … 
Math
(a) Themba wants to deposit a sum of money into a savings account so that he will have R30 000 in 3 years time for an overseas holiday how much money must he deposit into the account if the interest paid on the savings is 8,5% p.a … 
Math/Algebra
Jeremy opened two saving accounts at the beginning of 2010, each with an initial deposit of $4,000. Account A earned simple interest, and account B earned interest that was compounded annually. By the end of 2012, which account earned … 
Finance
You want to be able to withdraw $25,000 from your account each year for 20 years after you retire. If you expect to retire in 25 years and your account earns 7% interest while saving for retirement and 6.7% interest while retired Round … 
Math
How much would you need to deposit in an account each month in order to have $20,000 in the account in 7 years? 
math 107
Suppose you want to have $600,000 for retirement in 35 years. Your account earns 7% interest. a) How much would you need to deposit in the account each month?