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%.
You can still ask an expert for help

Expert Community at Your Service

  • Live experts 24/7
  • Questions are typically answered in as fast as 30 minutes
  • Personalized clear answers
Learn more

Solve your problem for the price of one coffee

  • Available 24/7
  • Math expert for every subject
  • Pay only if we can solve it
Ask Question

Expert Answer

sovienesY
Answered 2021-08-17 Author has 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.
Not exactly what you’re looking for?
Ask My Question

Expert Community at Your Service

  • Live experts 24/7
  • Questions are typically answered in as fast as 30 minutes
  • Personalized clear answers
Learn more