How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume the account earns 8% interest compounded monthly.


To solve this, we use the **future value formula** for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the future value of the investment/loan, which is $6000.
- $P$ is the present value (the amount we want to find).
- $r$ is the annual interest rate (8% or 0.08).
- $n$ is the number of times the interest is compounded per year (monthly compounding means $n = 12$).
- $t$ is the number of years the money is invested (15 years).

We need to find $P$, so we rearrange the formula:

\[
P = \frac{A}{\left(1 + \frac{r

How much would you need to deposit in an account now in order to have $6000 in the account in 15 years? Assume the account earns 8% interest compounded monthly.

Learn how to calculate the amount you need to deposit today to have $6000 in 15 years with 8% interest compounded monthly. This problem explores financial mathematics, using the compound interest formula, and is suitable for students in Grades 10-12.

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