The amount of money she should deposit is 6131.14 dollars.
How to find the compound interest ?
The amount she should deposit can be found as follows:
[tex]p = \frac{A}{(1+\frac{r}{n} )^{nt} }[/tex]
where
- A = amount to deposit
- r = rate
- n = number of times
- t = time
- p = principal
Therefore,
p = [tex]\frac{20000}{(1+\frac{0.12}{4}{} )^{40} }[/tex]
[tex]p=\frac{20000}{(1+0.03)^{40} }[/tex]
[tex]p = \frac{20000}{1.03^{40} }[/tex]
[tex]p=\frac{20000}{3.262037792}[/tex]
Hence,
p = $6,131.14
Therefore, she should deposit 6131.14 dollars.
learn more on compound interest here: https://brainly.com/question/13155407
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