Levi is going to invest in an account paying an interest rate of 3.4% compounded continuously. How much would Levi need to invest, to the nearest ten dollars, for the value of the account to reach 620 in 16 years?

Solution

Solution

Principal : 359.86

Solution steps

Translate the problem into an equation:

620 = P e^{0.034 \cdot 16}

Solve for

P, 620 = P e^{0.034 \cdot 16} : P = 359.86

Principal : 359.86

Popular Examples

one number is greater by 6 than twice another number but 3 times the smaller number exceeds the greater by 1. Find the numbers.What is the original price of an item that costs 137.50 after a 45% discount?Caleb invested 8,800 in an account paying an interest rate of 2.8% 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 13,060?The sum of two numbers is 19. Twice the smaller number is five greater than the larger number. What are the numbers?The sum of two numbers is 15 and the sum of their squares is 377. Find the larger number.