Compounded interest

Question

How much money should be deposited today in an account that earns 4.5% compounded monthly so that it will accumulate to $10,000 in 2 years?

Answer 1

10000= P(1+.045/12)^(12x2)

P= about $9,140.85

general formula is

A=P(1+r/n)^nt where

A= ending Amount

r= annual interest rate

n=number of compounding periods

t= years

P= starting Principle amount

A=10,000, r=4.5%, t= 2, n=12, plug into the formula and solve for P