Question 1088038: John wants to buy a new sports car, and he estimates that he'll need to make a $4,325.00 down payment towards his purchase. If he has 35 months to save up for the new car, how much should he deposit into his account if the account earns 2.08% compounded continuously so that he may reach his goal ?
Answer by jorel1380(3719)   (Show Source):
You can put this solution on YOUR website! If the interest is continuous, then: FV=P(0)e^rt, where FV is future value, P is the principal, r is the interest rate, and t is time.
35 months = 2.9167 yrs
4325=P x e^(2.9167 x 0.0208)
P=$4070.417 as the amount that needs to be deposited.
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