Mia is going to invest in an account paying an interest rate of 4.3% compounded continuously. How much would Mia need to invest, to the nearest cent, for the value of the account to reach 13,700 in 18 years?

Solution

Mia is going to invest in an account paying an interest rate of 4.3% compounded continuously. How much would Mia need to invest, to the nearest cent, for the value of the account to reach 13, 700 in 18 years?

Solution

Principal : 6317.96

Solution steps

Translate the problem into an equation:

13700 = P e^{0.043 \cdot 18}

Solve for

P, 13700 = P e^{0.043 \cdot 18} : P = 6317.96

Principal : 6317.96

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