Ian is going to invest in an account paying an interest rate of 5% compounded continuously. How much would Ian need to invest, to the nearest hundred dollars, for the value of the account to reach 108,000 in 6 years?

Solución

Ian is going to invest in an account paying an interest rate of 5% compounded continuously. How much would Ian need to invest, to the nearest hundred dollars, for the value of the account to reach 108, 000 in 6 years?

Solución

Principal : 80008.37

Pasos de solución

Translate the problem into an equation:

108000 = P e^{0.05 \cdot 6}

Resolver para

P, 108000 = P e^{0.05 \cdot 6} : P = 80008.37

Principal : 80008.37

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