Andres is going to invest in an account paying an interest rate of 2.9% compounded continuously. How much would Andres need to invest, to the nearest dollar, for the value of the account to reach 370 in 11 years?

Solution

Solution

Principal : 268.94

Solution steps

Translate the problem into an equation:

370 = P e^{0.029 \cdot 11}

Solve for

P, 370 = P e^{0.029 \cdot 11} : P = 268.94

Principal : 268.94

Popular Examples

6 plus a number is 11. what is the number A cyclist rides a bicycle at a constant speed. If the cyclist covers a distance of 90 kilometers in 6 hours, what is the speed of the cyclist in kilometers per hour?Jim and Sasha deposit 700.00 into a savings account which earns 8% interest compounded annually. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?Toby and Bonnie deposit 10,000.00 into a savings account which earns 1% interest compounded monthly. They want to use the money in the account to go on a trip in 2 years. How much will they be able to spend? round to the nearest cent The sum of 3 consecutive odd numbers is 69 .