SOLUTION: A savings account earns 4.9%, compounded continuously. How much would you need to deposit now in order to have a balance of $5000 after 2 years? Assume that no additional deposits

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Question 624713: A savings account earns 4.9%, compounded continuously. How much would you need to deposit now in order to have a balance of $5000 after 2 years? Assume that no additional deposits are to be made.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 In General A+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount $5000

P= principal = 

r= annual rate = .049

n= periods per year = 1

t= years = 2

A+=+P%281%2Br%2Fn%29%5E%28nt%29

5000=+P%281.049%29%5E2

5000%2F%281.049%29%5E2+=+P