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lta https Do Homework cherelle lester Internet Explorer File Edit View Fav P http /Student/PlayerH k.aspx?h kld-304050506&q; 9&flushed-true;&cld-; 3426860&centerwin; yes bing cherelle lester 12/5/15 12:09 P YAHOO Chegg Homework Lesson 44: 10.6 Exp./Logarithmic Equations; Applic Save 16 of 19 (10 complete Score: 0 of 5 pts HW Score: 55%, 55 of 100 pr 10.6.59 E Question Help bbing How much money must be deposited today to become $2450 in 50 years at 8.5% The deposit must be Chegg compounded continuously? Round to the nearest cent as needed Quest bbing Chegg Comment Enter your answer in the answer box and then click Check Answer. Expert All parts showing Clear All Check Answer HE Search the web and Windows 1834 218 3426 12:10 PM 12/5/2015

Explanation / Answer

The formula for continuous compounding is A = Pert where P is the principal amount, r ir the rate of interest, t is the number of years and A is the maturity amount after t years. Here, e is the Euler's number or Napier's constant and is equal to 2.71828 approximately> Here, A is $ 2450 , r is 8.5 % or 0.085 and t is 50 years. Thus, we have 2450 = Pe(0.085 * 50) = P*( 2.71828)4.25 or, 2450 = P* 70.1052 or, P = 2450/70.1052 = $ 34.95 approx..Thus, the answer is that the deposit must be $ 34.95 approx.

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