Question

How much should be invested at an interest rate of 5.5% for 20 years to obtain the accumulated amount of

$1,000,000 if the principal was compounded continuously?

Answer 1

Answer: $3004166.02

Step-by-step explanation: Alrighty then so first we need a formula to solve which is A=Pe^rt which is the compounded continously formula you can find online or a textbook. The formula you should use a calculator to solve is $1,000,000e^0.055(20)= $3,004,166.024