SOLUTION: How much money should you deposit into a certificate of deposit that pays 3 % a year compounded continuously to have dollar-sign 80,000 in the account in 18 years?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: How much money should you deposit into a certificate of deposit that pays 3 % a year compounded continuously to have dollar-sign 80,000 in the account in 18 years?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 907684: How much money should you deposit into a certificate of deposit that pays 3 % a year compounded continuously to have dollar-sign 80,000 in the account in 18 years?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A+=+P%2Ae%5E%28r%2At%29

80000+=+P%2Ae%5E%280.03%2A18%29

80000+=+P%2Ae%5E%280.54%29

80000+=+P%2A1.71600686

80000%2F1.71600686+=+P

46619.8602492767+=+P

P+=+46619.8602492767

P+=+46619.86 Round to the nearest penny.

You need to deposit $46,619.86 into the CD