How much would you have to deposit in an account with a 7.5% interest rate, compounded continuously, to have 2500 dollars in your account 8 years later.

Solution

Solution

Principal : 1372.03

Solution steps

Translate the problem into an equation:

2500 = P e^{0.075 \cdot 8}

Solve for

P, 2500 = P e^{0.075 \cdot 8} : P = 1372.03

Principal : 1372.03

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