If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?

$125,000.

Step-by-step explanation:

We are asked to find the principal amount which pays an interest rate of 15% to accumulate $500,000 in 20 years.

We will use simple interest formula to solve our given problem:

, where,

A = Amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Upon substituting our given values in above formula, we will get:

Therefore, you should deposit $125,000 to accumulate $500,000 in 20 years.

9 x 8 divided by (5-3)=36