# Moxie wants to have $5000. money does she have to deposit in an account at 6% interest, compounded 3 times per year, in order to have$5000 at the end of 4 years?

Jan 13, 2018

Around 2488 dollars

#### Explanation:

If we set $x$ to be the amount of money she deposited initially, then we get an equation:

$x \cdot {1.06}^{12} = 5000$

1.06 because her money is multiplied by 106% every time, and to the power of 12 because interest is compounded 3 times per year for 4 years.

So just solve for $x$:
$x = \frac{5000}{{1.06}^{12}}$

$x = \frac{5000}{2.01}$ [2.01 is approximate]

x≈2488