Question

Find how much money needs to be deposited now into an account to obtain 1,900 (future value) in 8 years if the interest rate is 5.5% per year compounded daily (365 times per year).

Answer 1

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Ans. We know that A =P int ('+ where (annual) P = initial deposited money r= interest rate n = number of times interest rate is compounding per year de time (in years) A = Zinal amount Now here

A= 190o t - 8 r = 5.5% 5.5 = Or055 100 = 0.055 n = 365 putting these values in 0:- 365 (8) 1900= P It 0.055 365

2 1900 - P с (р. 5 5 2 6 5 575193) Эfa 19 оо ), 55 7 6 55 75 ]«З Р – 1 2 3:11o9 76 / 3 ОХ P)(2a3. 7098