How much must be deposited today into the following account

How much must be deposited today into the following account in order to have $65,000 in 5 years for a down payment on a house? Assume no additional deposits are made. An account with annual compound interest and an APR of 5%

Solution

Amount after 5 yrs ----$ 65,000

Let the amount deposited today be $x

Amount = Principal( 1+r/100)^n

rate , (r) = 5 % ; n = 5 years

65,000 = P( 1+ 5/100)^5

65000 = P*1.276

P = $ 50940.44 must be deposited today into the following account i