Charlie hopes to accumulate $83,000 in a savings account in 10 years. If he wishes to make a single deposit today and the bank pays 3 percent compounded annually on deposits of this size, how much should Charlie deposit in the account

PV= $61,759.80

Explanation:

Giving the following information:

Future value (FV)= $83,000

Number of years (n)= 10 years

Interest rate (i)= 3% compounded annually

To calculate the initial deposit, we need to use the following formula:

PV= FV/(1+i)^n

PV= 83,000 / (1.03^10)

PV= $61,759.80

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