Question

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.

Answer 1

do u think it will b more or less than 20,000?

Answer 2

what is b

Answer 3

b = be

Answer 4

I think less

Answer 5

A = P(1+r)^t

let A = 20,000, r = 0.05, and t = 4
solve for P

Answer 6

more specifically...

(total money) = (money deposited)(1+interest/100)^time

Answer 7

vocaloid

Answer 8

If you need more time, let's change vocaloid's equation a little bit
beginning money = [total money] / [(1.05)^4]

Can you solve that now?

Answer 9

It's stil unclear

Answer 10

Do you know how to raise a number to a power?
Part of that equation is asking you to raise 1.05 to the 4th power. Can you do that?

Answer 11

Yea

Answer 12

What is 1.05 to the 4th power?

Answer 13

1.215

Answer 14

Yes
So according to the equation, you get 20,000 and divide it by 1.215

Answer 15

To be even more exact, 1.05^4 = 1.21550625
and so the starting money would be 16,454.05