SOLUTION: Find how much money needs to be deposited now into an account to obtain $1,700 (Future Value) in 12 years if the interest rate is 4.5% per year compounded continuously.

Question 1088799: Find how much money needs to be deposited now into an account to obtain $1,700 (Future Value) in 12 years if the interest rate is 4.5% per year compounded continuously.
Answer by mathmate(429) (Show Source): You can put this solution on YOUR website!
Question:
Find how much money needs to be deposited now into an account to obtain $1,700 (Future Value) in 12 years if the interest rate is 4.5% per year compounded continuously.

Solution:
Future value 1700 is given by
F=Pe^(rt)
where
P=money deposited to be found
r=annual interest rate=0.045
t=time in years=12
1700=Pe^(.045*12)
P=1700/e^(.045*12)
=1700/1.7160
=990.67

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