Is it compounded Daily, Monthly, or
Annualy? Since the compounding frequency is not given, I'll assume
simple Interest:
P = Po + I.
P = Po + Po*r*t = $20,000.
Po + Po*0.05*4 = 20,000
Po + 0.2Po = 20000
1.2Po = 20000
Po = $16,666.67 = Initial deposit.
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.
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