Question

You want to have $25,000 for a down payment on a house 6 years from now. if you can earn 6.5 percent, compounded annually, on your savings, how much do you need to deposit today to reach your goal?

Answer 1

Use compound interest formula:
Future value, F 
25000=P(1+i)^n
where
P=present value to be found
i=annual interest rate = 0.065
n=number of years = 6
so
25000=P(1.065)^6
=>
P=(25000/1.065^6)=$17133.353