How much should you invest in an account that pays 6% annual interest compounded continuously if you want exactly $8000 after four years?

Serina asked Apr 1, 2023

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Serina asked Apr 1, 2023

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18 votes

Answer:

$6239

Explanation:

A(t) = P•e^rt

Substitute with 6% 0.06, t with 4 and A(t) with 8,000 to find the value of P.

8, 000 = P•e^0.06•4

8, 000 = P•e^0.24

8, 000 = P•1.27

P = 6, 293

Cfbd answered Apr 5, 2023

by Cfbd

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