 # 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 2021-08-16 Answered The amount required to be paid today. Given: The total amount in account after 5 years is$10000.
The rate of compound interest of $15\mathrm{%}$.
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Concept used:
Write the expression for the total amount in the account after some time.
$A=P\left({e}^{r×n}\right)$ .....(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, $15\mathrm{%}$ for r and 5 for n in Equation (I). $\mathrm{}10000=P\left({e}^{\left(0.15\right)\left(5\right)}\right)$ $P=\frac{\mathrm{}10000}{\left({2.72}^{0.75}\right)}$ $P=\frac{\mathrm{}10000}{2.117}$ $P=\mathrm{}4723.66$ The amount required to be paid today is$4724.