SOLUTION: John wants to buy a new sports car, and he estimates that he'll need to make a $4,325.00 down payment towards his purchase. If he has 35 months to save up for the new car, how much

Question 1088038: John wants to buy a new sports car, and he estimates that he'll need to make a $4,325.00 down payment towards his purchase. If he has 35 months to save up for the new car, how much should he deposit into his account if the account earns 2.08% compounded continuously so that he may reach his goal ?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
If the interest is continuous, then: FV=P(0)e^rt, where FV is future value, P is the principal, r is the interest rate, and t is time.
35 months = 2.9167 yrs
4325=P x e^(2.9167 x 0.0208)
P=$4070.417 as the amount that needs to be deposited.
☺☺☺☺
RELATED QUESTIONS
John wants to buy a new sports car, and he estimates that he'll need to make a $3,025.00... (answered by Theo)

Mike wants to buy a new car. He is able to negotiate a price of $21,500. He can secure a... (answered by jorel1380,MathTherapy)

Jason Thomas has saved $2,500 towards a down payment on a new truck. He wants to have a... (answered by Theo)

Alex expects to graduate in 3.5 years and hopes to buy a new car then. He will need a 20% (answered by ikleyn)

Alex expects to graduate in 3.5 years and hopes to buy a new car then. He will need a 20% (answered by Theo)

Suppose you can afford to pay $ 325 a month for 9 years towards a new car with no down... (answered by ikleyn)

Badr wants to buy a car in 5 years. He estimates that he needs $12 000 to purchase a... (answered by ewatrrr)

Omar wants to buy a television that will cost $900. He needs 25 percent as a down... (answered by macston)

Jack will need R20000 to buy his brother's car in two year's time. He wants to start... (answered by Theo)