# compounded continously

posted by .

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 -

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.

## Similar Questions

1. ### Math

Please check my work, thank you If \$7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
2. ### math

One thousand dollars is deposited in a savings account at 6% interest compounded continously. How many years are required for the balance in the account to reach \$2500
3. ### college math

Cindy deposited \$1,000 in an account that pays 12% interest compounded quarterly. How much money will Cindy have in the account after 7 years?
4. ### Math

How much money has to be invested at 4.3% compounded continously to have \$19,000 after 16 years
5. ### compounded continously

A saving account earns 4.3% compounded continously. How much needs to be deposit for a \$12,000 after 3 years?
6. ### math

You want to have \$85,000 college fund in 15 years. HOw much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit An APR of 4% compounded daily. You should …
7. ### Math

Please help me and show an understanding please, so I see how to figure them out. Lee deposited \$28,000 in an interest-bearing checking account that earns 3.5% interest compounded daily. Find the amount after 68 days. a.\$183.16 b.\$28,180.46 …
8. ### math

You invest \$1,000 at 4% compounded daily. Two years later you take the balance and place it into an account earning 4.5% compounded daily. Determine the value of your account three years after the 2nd investment.
9. ### math

Phil deposited \$1,000 in a savings account. How much will he have in his account in two years if his account is compounded annually at a 2% interest rate?
10. ### Math

You want to have \$60,000 college fund in 12 years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 8​% compounded daily. I know …

More Similar Questions