Question

If you need in your bank account in years, how much must be deposited now? The interest rate is, compounded continuously. Round your answer to the nearest dollar. The deposit required is Enter your answer in accordance to the question statement Entry field with correct answer 14816 . the absolute tolerance is +/-5.

Answer 1

The amount required to be deposited in the bank is $44449 if $60000 is required in the bank after 3 years at the interest rate of 10%.

Explanation:

As values are not provided in this question thus a similar question is found, which is attached herewith.

From the data

Amount needed in the bank=A=$60000

Number of years=t=3 years

Interest Rate=r=10%=0.1

So the continuous compounded interest is given as

`A=Pe^(rt)`

By substitution of values in the equation

`A=Pe^(rt)\\60000=Pe^(0.1*3)\\60000=Pe^(0.3)\\P=60000/e^(0.3)\\P=$44449`

So the amount required to be deposited in the bank is $44449 if $60000 is required in the bank after 3 years at the interest rate of 10%.