MHB Given amount and interest rate, find principal

[brownrebecca333]

Homework help please: If I want to have $60,000 in 8 years, how much would I need to deposit in the bank today if the account pays an interest rate of 9%?

 

[skeeter]

Re: Please help me

Homework help please: If I want to have $60,000 in 8 years, how much would I need to deposit in the bank today if the account pays an interest rate of 9%?

Simple or compounded interest? If compounded, what is the compounding period?

 

[Wilmer]

Homework help please: If I want to have $60,000 in 8 years, how much would I need to deposit in the bank today if the account pays an interest rate of 9%?

60000/((1 + .09/f)^(8*f)) where f = compounding frequency