William is going to invest in an account paying an interest rate of 2.5% compounded continuously. How much would William need to invest, to the nearest cent, for the value of the account to reach 4,700 in 14 years?

Solución

William is going to invest in an account paying an interest rate of 2.5% compounded continuously. How much would William need to invest, to the nearest cent, for the value of the account to reach 4, 700 in 14 years?

Solución

Principal : 3312.03

Pasos de solución

Translate the problem into an equation:

4700 = P e^{0.025 \cdot 14}

Resolver para

P, 4700 = P e^{0.025 \cdot 14} : P = 3312.03

Principal : 3312.03

Ejemplos populares

3 less than the square of a number.If 2,000 is invested at 11% annual interest compounded quarterly, what is the account balance after 10 years, assuming no additional deposits or withdrawals are made?Find the simple interest when 100 is invested at 9% for 2 years Nathaniel is going to invest in an account paying an interest rate of 3.1% compounded quarterly. How much would Nathaniel need to invest, to the nearest ten dollars, for the value of the account to reach 5,700 in 17 years?solve the quotient of a number and-1.5 is 21