compounded continously

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

  1. 👍
  2. 👎
  3. 👁
  1. 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.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Business Math

    Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the beginning of year 4, Shelley deposits an additional $80,000 at 5% interest compounded semiannually. At the end of 6 years, what is

  2. algebra

    How much must be deposited today into the following account in order to have 50,000 in 8 years for a down payment on a​ house? Assume no additional deposits are made. An account with monthly compounding and an APR of 7​%

  3. math

    Shania deposited $3,000 into a savings account that earns 6.5% simple interest. How much will Shania have in her savings account after 10 years?

  4. Algebra( check my answers)

    1. Juan deposited $200 in a savings account earning 3% interest over 2 years. What was the total amount of interest earned after 2 years? $12 $24 $120 ( my answer) $240 2. Mary borrowed $11,000 at 5% interest for 4 years. What was

  1. Lat math question for some days. Can y'all help?

    Huan deposited $850 into a college savings account earning 4.8% interest compounded annually. He also deposited $850 into a second account earning 4.8% simple interest. He made no additional deposits. After 10 years, which account

  2. algebra

    Sam opened a savings account that accrues compound interest at a rate of 3% annually. Let P be the initial amount Sam deposited and let t be the number of years the account has been open. Write an equation to find A, the amount of

  3. Math

    Nicole deposited $2,000 at 6% simple interest. How long will it be before she has $2,600 in her account? F. 4 Years G. 5 Years H. 6 Years J. 7 Years

  4. Math

    Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $40,000 at 9% intrest compounded semiannually. At the end of 6 years, what is the

  1. algebra

    Hassan deposited $7,500 into a bank account. At the end of 3 years, the account had earned $900 in simple interest. What rate of interest did the account earn per year?

  2. math

    How much must be deposited today into the following account in order to have $ 25,000 in 8 years for a down payment on a​ house? Assume no additional deposits are made. An account with annual compounding and an APR of 5​%

  3. 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

  4. calculus m119

    (1 point) At what constant, continuous rate must money be deposited into an account if the account is to contain $22500 in 5 years? The account earns 6% interest compounded continuously.

You can view more similar questions or ask a new question.