Answer:
Hence, your answer will be:
P ≈ $54900
Explanation:
Owen is going to invest in an account paying an interest rate of 5.7% compounded continuously. How much would Owen need to invest, to the nearest hundred dollars, for the value of the account to reach $122,000 in 14 years?
Compounded Continuously:
A = Pe^rt
Given Values:
A = 122000 t = 14 r = 0.057
Plug In:
122000 = Pe^0.057(14)
Plug In:
122000 = Pe^0.798
Evaluate In Calculator Using e Button:
122000 = P(2.221094295)
Divide By: 2.221094295
122000 / 2.221094295 = P(2.221094295) / 2.221094295
Use Calculator:
54927.87959894 = P
Round to The Nearest Hundred Dollars:
P ≈ $54900