Answer:
P = $17,750.074
Step-by-step explanation:
amount (A) = $20,000
rate of interest= 4%
time (t) = 6 year
principle (P) = ?
[tex]A=P (1+\frac{r}{100})^{t}[/tex]
[tex]20000=P (1+\frac{4}{100})^{6}[/tex]
[tex]P=20000\times (\frac{25}{26})^6[/tex]
on solving we get
P = $17,750.074
hence we have to deposit $17,750.074 to get $20,000 in the account after 6 years.
