SOLUTION: Find how much money needs to be deposited now into an account to obtain $1,000(future value) in 10 years if the interest rate is 4.5% per year compounded continuously.

SOLUTION: Find how much money needs to be deposited now into an account to obtain $1,000(future value) in 10 years if the interest rate is 4.5% per year compounded continuously.

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Question 1167616: Find how much money needs to be deposited now into an account to obtain $1,000(future value) in 10 years if the interest rate is 4.5% per year compounded continuously.
Answer by VFBundy(438) (Show Source): You can put this solution on YOUR website!
1000 = P * e^(0.045*10)

1000 = P * e^(0.45)

1000 = P * 1.568

P = 1000/1.568

P = $637.76
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