Brooklyn is going to invest in an account paying an interest rate of 3.5% compounded continuously. How much would Brooklyn need to invest, to the nearest ten dollars, for the value of the account to reach 640 in 9 years?

Solution

Solution

Principal : 467.06

Solution steps

Translate the problem into an equation:

640 = P e^{0.035 \cdot 9}

Solve for

P, 640 = P e^{0.035 \cdot 9} : P = 467.06

Principal : 467.06

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