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Ian is going to invest in an account paying an interest rate of 6. 2% compounded continuously. How much would i need to invest, to the nearest ten dollars, for the value of the account to reach $182,000 in 10 years?.

User Zelko
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2 Answers

5 votes

Answer: 97910

Step-by-step explanation:

Ian is going to invest in an account paying an interest rate of 6. 2% compounded continuously-example-1
User Tomin
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The nearest ten dollars, you would need to invest approximately $132,140.

Let’s find the amount you need to invest in an account paying an interest rate of 6.2% compounded continuously for the value of the account to reach $182,000 in 10 years.

We can use the formula for continuous compound interest:

A = P * e^(rt)

where:

A is the final amount

P is the initial principal

r is the annual interest rate

t is the time in years

In this case, we have:

A = $182,000

r = 6.2% = 0.062

t = 10 years

Let's solve for P:

P = A / e^(rt)

P = $182,000 / e^(0.062 * 10)

P ≈ $132,136.46

Rounding to the nearest ten dollars, you would need to invest approximately $132,140.

User Daonb
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