How much money has to be invested at 5.9% interest compounded continuously to have $15,000 after 12 years?

Mathematics

1 answer:

scoray [572]3 years ago

8 0

The amount of $7389.43 has to be invested at 5.9% interested continuously to have $15,000 after 12 years.

Step-by-step explanation:

The given is,

Future value, F = $15,000

Interest, i = 5.9%

( compounded continuously )

Period, t = 12 years

Step:1

Formula to calculate the present with compounded continuously,

$F=Pe^{(i)(t)}$ ...............(1)

Substitute the values in equation (1) to find the P value,

$15000=Pe^{(0.059)(12)}$ ( ∵ $i = \frac{5.9}{100}=0.059$ )

$15000=Pe^{0.708}$

$15000=P(2.0299)$ ( ∵ $e^{o.708} =2.0299$ )

We change the P (Present value) into the left side,

$P=\frac{15000}{2.0299}$

$=7389.427$

≅ 7389.43

P = $ 7389.43

Result:

The amount of $7389.43 has to be invested at 5.9% interested continuously to have $15,000 after 12 years.

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A local hamburger shop sold a total of 712 burgers on Tuesday

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let cheeseburers = c
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Plug in h + 62 for c

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c = 325 + 62
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