How much money must you deposit into a savings account at th

How much money must you deposit into a savings account at the end of each year at 5% interest compounded annually in order to earn $13,157.13 interest during a 15-year period?

Solution

A = P(1+r/100)^n

where A is the amount after n years, P is the amont invested at rate r.

13157.13=P(1+0.05)^15

13157.13=P(1.05)^15

13157.13=P(2.078)

P = 13157.13/2.078

P = 6331.63