How much money, as a one-time deposit, PV , would you need to deposit into an account that earns 1.5% compounded monthly to earn a future value, FV , of $7,500 in three years? This amount can be found by using algebra to rearrange the function, FV=PV(1+rn)(nY) , so that FV becomes an input variable and PV becomes the output variable.

PV=FV(1+rn)(−nY)

Use this function to find the amount needed as a one-time deposit to earn $7,500 in 3 years.