The amount of money that needs to be deposited into an account to reach some future goal is called the present value. The following table gives the present value (to the nearest dollar) for an account that earns 10% compounded annually so that the account value will be $50,000 after intervals ranging from 1 to 7 years. Years Present value 1 $45,455 2 41,322 3 37,566 4 34,151 5 31,046 6 28,224 7 26,658 (a) Using x as the years and y as the present value (in dollars), develop an exponential model for these data. (Round your numerical values to four decimal places.) y = (b) Use the model to find the present value (to the nearest dollar) of this account for its value to be $50,000 after 12 years.
The amount of money that needs to be deposited into an account to reach some future goal is called the present value. The following table gives the present value (to the nearest dollar) for an account that earns 10% compounded annually so that the account value will be $50,000 after intervals ranging from 1 to 7 years. Years Present value 1 $45,455 2 41,322 3 37,566 4 34,151 5 31,046 6 28,224 7 26,658 (a) Using x as the years and y as the present value (in dollars), develop an exponential model for these data. (Round your numerical values to four decimal places.) y = (b) Use the model to find the present value (to the nearest dollar) of this account for its value to be $50,000 after 12 years.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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The amount of money that needs to be deposited into an account to reach some future goal is called the present value. The following table gives the present value (to the nearest dollar) for an account that earns 10% compounded annually so that the account value will be $50,000 after intervals ranging from 1 to 7 years.
| Years | Present value |
|---|---|
| 1 | $45,455 |
| 2 | 41,322 |
| 3 | 37,566 |
| 4 | 34,151 |
| 5 | 31,046 |
| 6 | 28,224 |
| 7 | 26,658 |
(a)
Using x as the years and y as the present value (in dollars), develop an exponential model for these data. (Round your numerical values to four decimal places.)
y =
(b)
Use the model to find the present value (to the nearest dollar) of this account for its value to be $50,000 after 12 years.
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