Question

Stella is going to invest in an account paying an interest rate of 7% compounded

continuously. How much would Stella need to invest, to the nearest ten dollars, for
the value of the account to reach $1,650 in 9 years?

Answer 1

880

Explanation:

Answer 2

$901.64

Explanation:

Given data

rate= 7%

Final amount = $1650

time= 9 years

Let us apply the compound interest formula to solve for the Principal amount P

A=P(1+r)^t

substitute

1650=P(1+0.07)^9

1650=P(1.07)^9

1650=P1.84

Divide both sides by 1.84

P=1650/1.83

P=901.64

Hence she needs to invest $901.64