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?

Lösung

S ere ni t y 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 4.4% 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 S ere ni t y n ee d t o in v es t, t o t h e n e a res t h u n d re d 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 670 in 11 ye a rs ?

Principal : 412.93

Schritte zur Lösung

Translate the problem into an equation:

670 = P e^{0.044 \cdot 11}

Löse nach

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

Principal : 412.93