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anonymous

  • one year ago

How much would you need to deposit in an account now in order to have $20,000 in the account in 4 years? Assume the account earns 5% interest.

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  1. muscrat123
    • one year ago
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    do u think it will b more or less than 20,000?

  2. David27
    • one year ago
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    what is b

  3. muscrat123
    • one year ago
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    b = be

  4. David27
    • one year ago
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    I think less

  5. Vocaloid
    • one year ago
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    A = P(1+r)^t let A = 20,000, r = 0.05, and t = 4 solve for P

  6. Vocaloid
    • one year ago
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    more specifically... (total money) = (money deposited)(1+interest/100)^time

  7. David27
    • one year ago
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    vocaloid

  8. wolf1728
    • one year ago
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    If you need more time, let's change vocaloid's equation a little bit beginning money = [total money] / [(1.05)^4] Can you solve that now?

  9. anonymous
    • one year ago
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    It's stil unclear

  10. wolf1728
    • one year ago
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    Do you know how to raise a number to a power? Part of that equation is asking you to raise 1.05 to the 4th power. Can you do that?

  11. anonymous
    • one year ago
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    Yea

  12. wolf1728
    • one year ago
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    What is 1.05 to the 4th power?

  13. anonymous
    • one year ago
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    1.215

  14. wolf1728
    • one year ago
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    Yes So according to the equation, you get 20,000 and divide it by 1.215

  15. wolf1728
    • one year ago
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    To be even more exact, 1.05^4 = 1.21550625 and so the starting money would be 16,454.05

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