Serenity is going to invest in an account paying an interest rate of 4.4% compounded continuously. How much would Serenity need to invest, to the nearest hundred dollars, for the value of the account to reach 670 in 11 years?

Solution

Solution

Principal : 412.93

Solution steps

Translate the problem into an equation:

670 = P e^{0.044 \cdot 11}

Solve for

P, 670 = P e^{0.044 \cdot 11} : P = 412.93

Principal : 412.93

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