document.write( "Question 1138632: John wants to buy a new sports car, and he estimates that he'll need to make a $3,025.00 down payment towards his purchase. If he has 17 months to save up for the new car, how much should he deposit into his account if the account earns 3.979% compounded continuously so that he may reach his goal? John needs to deposit how much money? \n" ); document.write( "

Algebra.Com's Answer #756431 by Theo(13342) $\"\"$ $\"About$

You can put this solution on YOUR website!
the formula for continuous compounding is f = p * e^(rt)\r
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\n" ); document.write( "\n" ); document.write( "f is the future value
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period
\n" ); document.write( "t is the number of time periods
\n" ); document.write( "e is the scientific constant 2.718281828.....\r
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\n" ); document.write( "\n" ); document.write( "in your problem:\r
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\n" ); document.write( "\n" ); document.write( "p = what you want to find
\n" ); document.write( "f = 3025
\n" ); document.write( "r = 3.979% / 100 = (.03979/12) = per month
\n" ); document.write( "t = 17 months\r
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\n" ); document.write( "\n" ); document.write( "formula becomes 3025 = p * e^(.03979/12 * 17)\r
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\n" ); document.write( "\n" ); document.write( "solve for p to get p = 3025 / (e^(.03979/12 * 17) = 2859.20017.\r
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