Question

Q14 PHOTO ATTACHESD QUESTION 14 THIS IS NOT FROM GRADED ASSESMENT THASNK YOU

Answer 1

Given that,

She wants $90,000 in 4 yrars that is compounded continously at 7%

To find the initial amount.

we have the formula to find amount that is compounded continuously is,

`A=P(e)^(rt)`

where P is the initial amount, r is the rate of interest, t be the number of years.

Substitute the values we get,

(that is, A=90000, r=7, t=4)

`90000=P(e)^(7*4)`
`90000=P*1.44625`
`P=(90000)/(1.44625)`
`P=62,229.9049`

Exact Amount is,

`P\approx62,230`

Exact Amount is $62,230

Amount rounded to two decimal,

`P\approx62,229.91`

Amount rounded to two decimal is $62,229.91