Posted by **Anonymous** on Monday, April 11, 2011 at 10:39am.

Wnat to have $60,000 in an account after 40 years. How much needs to be deposited inthe APR is 16.3% compounded daily?

- compounded continously -
**Henry**, Tuesday, April 12, 2011 at 8:51pm
Compounded Continuously

Pt = Po*e^rt = $60000,

r = (16.3%/365) / 100% = 0.0004466 = Daily % rate expressed as a decimal.

t = 40yrs * 365days/yr = 14600 days.

rt = 0.0004466 * 14600 = 6.52.

Po * e^6.52 = 60000,

Po = 60000 / e^6.52 = $88.42 = initial deposit.

ComPounded Daily

Pt = Po*(1+r)^n = $60000,

r = (16.3%/365) / 100% = 0.0004466 =

daily % rate express as a decimal.

n = 365comp./yr * 40yrs = 14600 comp.

periods.

Po*(1.0004466)^14600 = 60000,

Po = 60000 / (1.0004466)^14600 = $88.52 = initial deposit.

## Answer This Question

## Related Questions

- compounded continously - A saving account earns 4.3% compounded continously. How...
- math - You invest $1,000 at 4% compounded daily. Two years later you take the ...
- math - You want to have $85,000 college fund in 15 years. HOw much will you have...
- Math - Please help me and show an understanding please, so I see how to figure ...
- math - One thousand dollars is deposited in a savings account at 6% interest ...
- Math - How much money has to be invested at 4.3% compounded continously to have...
- Math - Please check my work, thank you If $7,800 is deposited into an account ...
- college math - Cindy deposited $1,000 in an account that pays 12% interest ...
- math - Phil deposited $1,000 in a savings account. How much will he have in his ...
- Algebra ASAP - Suppose that $17,000 is invested in a savings account paying 5.1...

More Related Questions