The amount required to be paid today. Given: The total amount in account after 5 years is $10000. The rate of compound interest of 15\%.

Caelan

Caelan

Answered question

2021-08-16

The amount required to be paid today.
Given: The total amount in account after 5 years is $10000.
The rate of compound interest of 15%.

Answer & Explanation

sovienesY

sovienesY

Skilled2021-08-17Added 89 answers

Concept used:
Write the expression for the total amount in the account after some time.
A=P(er×n) .....(I)
Here, the principal amount added in account is P, the rate of compount interest is r and time period is n.
Calculation:
Calculate the amount required to be paid today.
Substitute $10000 for A, 15% for r and 5 for n in Equation (I).
$10000=P(e(0.15)(5))
P=$10000(2.720.75)
P=$100002.117
P=$4723.66
The amount required to be paid today is $4724.

Do you have a similar question?

Recalculate according to your conditions!

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?