Question

How much money has to be invested at 2.3% interest compounded continuously to have $41,000 after 17 years?

Answer 1

For this, we have to calculate how much money has to be invested at 2.3% interest compounded continuously to achieve $41,000 after 17 years

Formula: A= P * ( 1+r)^t
A= $41,000
r=0.023
t= 17
41,000= P * (1+0.023)^17
41,000= P * (1.023)^17
41,000= P * 1.4719
P= 41,000 : 1.4719
P= $27,731.59
Therefore, the answer is C. $27,731.59 
I checked by doing the opposite, and I got $41,000.01, which is the closest to the question