Asked • 04/15/22

Monthly deposits, compound interest

You begin with $100 in a savings account. You make the same deposit every month. The interest rate is 4%, compounded continuously. If you have $10,000 after 5 years, what is the monthly deposit?

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Danson W. answered • 06/19/22

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$100(1+0.04/12)^(60-1)=10,000

$100(1.0033333)^59=$9,967.65

$9,967.65/59=$168.222

Ans= $168.22

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Vahan P.

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I think you need to take into account that the interest keeps accumulating after each deposit, in addition to the interest that accumulated on the original $100.
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06/19/22

Vahan P.

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100e^(5*.04) + kSummation n 0 to 60 e^(.04n/12) = 10,000, solve for k.
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06/21/22

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