131k views
1 vote
How much money needs to be deposited now into an account to obtain $1,500 in 7 years if the interest rate is 5% per year compounded continuously?

User Rosencreuz
by
8.4k points

1 Answer

11 votes


~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \$1500\\ P=\textit{original amount deposited}\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &7 \end{cases} \\\\\\ 1500=Pe^(0.05\cdot 7)\implies \cfrac{1500}{e^(0.35)}=P\implies 1057.03\approx P

User DeutschZuid
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories