Question

Landon is going to invest in an account paying an interest rate of 4.3% compounded continuously. How much would Landon need to invest, to the nearest hundred dollars, for the value of the account to reach $11,300 in 14 years?

Answer 1

6200

Explanation:

Answer 2

$ 6,189.18

Explanation:

From the above question, we can deduce that we are meant to find the Principal (Initial Amount ) invested.

The formula for the Principal of a compound interest that is compounded continuously is given as:

P = A / e^rt

Where

P = Principal

A = Totally Amount after time t = $11,300

r = Interest rate = 4.3 % = 0.043

t = 14 years

P = $11,300/ e ^0.043 × 14

P = $ 6,189.18

Hence, Landon needs to invest, $ 6,189.18