Ian is going to invest in an account paying an interest rate of 6.2% compounded continuously. How much would Ian need to invest, to the nearest ten dollars, for the value of the account to reach 182,000 in 10 years?

Solution

Ian is going to invest in an account paying an interest rate of 6.2% compounded continuously. How much would Ian need to invest, to the nearest ten dollars, for the value of the account to reach 182, 000 in 10 years?

Solution

Principal : 97905.89

Solution steps

Translate the problem into an equation:

182000 = P e^{0.062 \cdot 10}

Solve for

P, 182000 = P e^{0.062 \cdot 10} : P = 97905.89

Principal : 97905.89

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