Question

Dominic is going to invest in an account paying an interest rate of 4.6% compounded continuously. How much would Dominic need to invest, to the nearest dollar, for the value of the account to reach $84,000 in 5 years

Answer 1

Answer: 66741

Step-by-step explanation:

Answer 2

Answer: $66,740.82

Step-by-step explanation:

Formula to find the accumulated amount if compounded continuously :

`A=Pe^(rt)`, where P= principal invest

t = time

r= rate of interest.

Given : A= $84,000 , r= 4.6% = 0.046 , t=5 years

`84000=P e^(0.046*5)\\\\\Rightarrow\ 84000=P (1.2586)\\\\\Rightarrow\ P=(84000)/(1.2586)\approx66740.82`

Hence, the amount need to invest = $66,740.82