Answer:
$102,348.034
Explanation:
It is a simple problem of Compound Interest, we have to find the Principle amount invested.
Given:
Future value (F) = $260,000
Rate(R) = 6% = 6/100 = 0.06
Number of years (n) = 16 years
Initial deposit (C) = ?
Calculation:
[tex]Future value (F) = C\times (1+R)^n\\Future value (F) = C (1+0.06)^{16}\\260,000 = C(2.54035168)[/tex]
$260,000/2.54035168 = C
$102,348.034 = C
So, Initial cash Deposit = $102,348.034
