How much money should be deposited today in an account that earns 4% compounded semiannually so that it will accumulate to $15,000 in three years?

Answer 1

Hi Steve,

You're looking for the initial amount, or P in this equation:

Your final amount (A) is $15000. You are given interest rate(r), number of compounds per period(n), and total time (t). So substitute accordingly and solve for P.

Hope that makes sense!