Question

How much money has to be invested at 4.3% interest compounded continuously to have $19,000 after 16 years?

Answer 1

P=A/e^rt
P=19,000÷e^(0.043×16)
P=9,549.02

Answer 2

Answer:Money invested is $9,549.02

Explanation:

The formula to calculate compound interest continuously is A= Pe^{rt}[/tex]

Here A is the amount ,P is the principal ,r=rate of interest ,t= time in years and e is mathematical constant.

Given A= $19,000,r=4.3%=0.043,t=16 years

Substituting these values in the formula we have:

`19,000=Pe^(0.043x16)`

`19,000=P e^(0.688)`

19,000=P(1.989732)

P=9549.02

Money invested is $9549.02.