document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1094941>Question 1094941</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A savings account earns 4.3% compounded continuously. How much would u need to deposit now in order to have a balance of 25000 after three years ? Assume that no additional deposits are to be made. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #709559 by </B><A HREF=/tutors/aboutme.mpl?userid=jorel1380><B>jorel1380(3719)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jorel1380><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=jorel1380><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=709559\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Continuous compounding is FV=P*e^rt, where FV equals future value, P is the amount of the initial deposit, r is the interest rate, and t is time. Let n be the amount of the initial deposit. Then:<BR>\n" );
document.write( "25000=n*e^3*0.043=n*e^0.129<BR>\n" );
document.write( "25000/1.1376901241657315822358920377993=n<BR>\n" );
document.write( "n=21974.349 as the amount necessary for the initial deposit<BR>\n" );
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