Question

How much should be deposited into an account today if it is to accumulate to $32400 in 30 years if the account bears interest at 8.01% compounded monthly?


I did A = 32400(1 + 0.0801/12)^(12*30) = $355,375, but that's wrong...

Answer 1

you figured how much will be there in 30 years if 32400 is deposited now. You want
A(1 + 0.0801/12)^(12*30) = 32400
A = 2953.95

Answer 2

thanks!