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3 years ago

William is going to invest in an account paying an interest rate of 5.9% compounded

Mathematics

1 answer:

Valentin [98]3 years ago

3 0

Answer:

$\$400.92$

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

$A=P(e)^{rt}$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

e is the mathematical constant number

we have

$t=19\ years\\ A=\$1,230\\ r=5.9\%=5.9/100=0.059$

substitute in the formula above

$1,230=P(e)^{0.059*19}$

solve for P

$1,230=P(e)^{1.121}$

$P=1,230/(e)^{1.121}$

$P=\$400.92$

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2 years ago

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Step-by-step explanation:

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2 years ago

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