How much would you need to deposit in an account now in orde

How much would you need to deposit in an account now in order to have $2000 in the account in 15 years? Assume the account earns 3% interest compounded daily.

$

Solution

Formula for compounding daily:

Amount = P(1 +r/365)^(t*365)

2000 = P( 1 +0.03/365)^(15*365)

= P*1.568

P = $2000/1.568 = $ 1275.51 we  need to deposit in an account now