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How much money has to be invested at 2.3% interest compounded continuously to have $41,000 after 17 years?

User Fumihwh
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2 Answers

4 votes
I'd suggest you look up the "continuous compounding formula." It is

A = Pe^(rt), where A is the accumulation after t years, P is the original amount (Principal), r is the annual interest rate as a decimal fraction, and t is the elapsed time in years.

Here, A = $41000 = P e^(0.023*17). How would you go about solving this for P? That's your job here.

$41000
----------------- = P = ??
e^(0.023*17)

Hint: calculate 0.023*17 first, and then use your result as the exponent of the base "e."
User Lszrh
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2 votes
41000:(1.023^17)=initial deposite
User Labo
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