Question

Hunter is going to invest in an account paying an interest rate of 1.7% compounded continuously. How much would Hunter need to invest, to the nearest cent, for the value of the account to reach $4,500 in 18 years?

Answer 1

Answer:3313.74

Explanation:

Answer 2

$3333.33 approx

Explanation:

Given data

Rate r= 1.7%

Final Amount A=$4500

Time = 18years

Principal P= ????

The expression for the compound interest is given bellow as

A=P(1+r)^t

4500= P(1+0.017)^18

4500= P(1.017)^18

4500= P*1.35

P= 4500/1.35

P= $3333.33

Hence the principal is $3333.33 approx