Logan is going to invest in an account paying an interest rate of 3.5% compounded continuously. How much would Logan need to invest, to the nearest ten dollars, for the value of the account to reach 19,300 in 19 years?

Solution

Logan is going to invest in an account paying an interest rate of 3.5% compounded continuously. How much would Logan need to invest, to the nearest ten dollars, for the value of the account to reach 19, 300 in 19 years?

Solution

Principal : 9925.48

Solution steps

Translate the problem into an equation:

19300 = P e^{0.035 \cdot 19}

Solve for

P, 19300 = P e^{0.035 \cdot 19} : P = 9925.48

Principal : 9925.48

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