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Popular Word Problems >

Hassan is going to invest in an account paying an interest rate of 2.3% compounded continuously. How much would Hassan need to invest, to the nearest ten dollars, for the value of the account to reach 1,130 in 8 years?

Solution

H a ss an 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 2.3% 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 H a ss an n ee d t o in v es t, t o t h e n e a res t t e n d o ll a rs, 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 1, 130 in 8 ye a rs ?

Solution

Principal : 940.09

Solution steps

Translate the problem into an equation:

1130 = P e^{0.023 \cdot 8}

Solve for

P, 1130 = P e^{0.023 \cdot 8} : P = 940.09

Principal : 940.09

Popular Examples

Alexander invested 240 in an account paying an interest rate of 2.3% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 9 years?three more than the quotient of a number and 6 equals 7 Michael is going to invest in an account paying an interest rate of 6.7% compounded continuously. How much would Michael need to invest, to the nearest dollar, for the value of the account to reach 100,000 in 14 years?Samantha invested 67,000 in an account paying an interest rate of 3.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?Julia invested 17,000 in an account paying an interest rate of 2.4% compounded daily. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 21,400?