Bilquis is going to invest in an account paying an interest rate of 5.6% compounded continuously. How much would Bilquis need to invest, to the nearest dollar, for the value of the account to reach 84,000 in 19 years?

Soluzione

B i lq u i s i s g o in g t o in v es t in an a cco u n t p a y in g an in t eres t r a t e o f 5.6% co m p o u n d e d co n t in u o u s l y . Ho w m u c h w o u l d B i lq u i s n ee d t o in v es t, t o t h e n e a res t d o ll a r, f or t h e v a l u e o f t h e a cco u n t t o re a c h 84, 000 in 19 ye a rs ?

Principal : 28986.11

Fasi della soluzione

Translate the problem into an equation:

84000 = P e^{0.056 \cdot 19}

Risolvi per

P, 84000 = P e^{0.056 \cdot 19} : P = 28986.11

Principal : 28986.11