Ximena is going to invest in an account paying an interest rate of 2.2% compounded continuously. How much would Ximena need to invest, to the nearest ten dollars, for the value of the account to reach 5,100 in 6 years?

Solution

Ximena is going to invest in an account paying an interest rate of 2.2% compounded continuously. How much would Ximena need to invest, to the nearest ten dollars, for the value of the account to reach 5, 100 in 6 years?

Solution

Principal : 4469.34

Solution steps

Translate the problem into an equation:

5100 = P e^{0.022 \cdot 6}

Solve for

P, 5100 = P e^{0.022 \cdot 6} : P = 4469.34

Principal : 4469.34

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