How much money has to be invested at 5.9% interest compounded continuously to have $15,000 after 12 years?

Mathematics

1 answer:

scoray [572]3 years ago

8 0

The amount of $7389.43 has to be invested at 5.9% interested continuously to have $15,000 after 12 years.

Step-by-step explanation:

The given is,

Future value, F = $15,000

Interest, i = 5.9%

( compounded continuously )

Period, t = 12 years

Step:1

Formula to calculate the present with compounded continuously,

$F=Pe^{(i)(t)}$ ...............(1)

Substitute the values in equation (1) to find the P value,

$15000=Pe^{(0.059)(12)}$ ( ∵ $i = \frac{5.9}{100}=0.059$ )

$15000=Pe^{0.708}$

$15000=P(2.0299)$ ( ∵ $e^{o.708} =2.0299$ )

We change the P (Present value) into the left side,

$P=\frac{15000}{2.0299}$

$=7389.427$

≅ 7389.43

P = $ 7389.43

Result:

The amount of $7389.43 has to be invested at 5.9% interested continuously to have $15,000 after 12 years.

You might be interested in

Write down the ratio of baking soda to baking powder if baking soda is 5ml and baking powder is 15ml

fomenos

Answer:

1:3

Step-by-step explanation:

That ratio would be 5 :15 or 1:3

8 0

1 year ago

Three cube shaped boxes are stacked one above the other the volumes of two of the boxes are 1331 m³ each and the volume of the t

Pepsi [2]

So to find out the answer, you need to find out the dimensions of each cube. So for the 1331, it's 11 x 11 x 11. So you know that would be 11 meters high. Now the next cube. Then there's another 1331, so that would be another 11 meters high. Then 729, also 9 x 9 x 9, so that's going to be 9 meters high. Then add all the cube square roots. 11 + 11 + 9 = 31. So the height of the stacked boxes will be 31 meters.

5 0

2 years ago

What is the measure of x?

MA_775_DIABLO [31]

when running a line, in a right-triangle, from the 90° angle perpendicular to its opposite side, we will end up with three similar triangles, one Small, one Medium and a containing Large one, from where we can use proportions to get their sides, so Check the picture below.