Popular >

In 1 year, Megan wants to buy a bicycle that costs 800.00. If she opens a savings account that earns 12% interest compounded continuously, how much will she have to deposit as principal to have enough money in 1 year to buy the bike?

Solution

Solution

Principal : 709.54

Solution steps

Translate the problem into an equation:

800 = P e^{0.12 \cdot 1}

Solve for

P, 800 = P e^{0.12 \cdot 1} : P = 709.54

Principal : 709.54

Popular Examples

You roll a 6-sided die two times.:What is the probability of rolling a 6 and then rolling a 2?:Write your answer as a fraction or whole number.the curved surface of a circular cone can be folded out to form a semicircle with the diameter 20cm , find the volume The circumference of a circle is 11pi cm. What is the area, in square centimeters? Express your answer in terms of pipi.The sum of two numbers is 28 and their difference is 4. What are the numbers?The product of two consecutive positive integers is 20. Find the value of the lesser integer.