Amira is going to invest in an account paying an interest rate of 2.4% compounded continuously. How much would Amira need to invest, to the nearest dollar, for the value of the account to reach 320 in 17 years?

Solution

Solution

Principal : 212.79

Solution steps

Translate the problem into an equation:

320 = P e^{0.024 \cdot 17}

Solve for

P, 320 = P e^{0.024 \cdot 17} : P = 212.79

Principal : 212.79

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