A principal P is to be invested at continuous compound interest of 1.9% to yield $50,000 in 20 years. What is the approximate va

Question

Ulleksa [173]

2 years ago

14

A principal P is to be invested at continuous compound interest of 1.9% to yield $50,000 in 20 years. What is the approximate va

lue of P to be invested?

Mathematics

1 answer:

AVprozaik [17] · Answer 1 · 2022-07-25T21:48:00+03:00

AVprozaik [17]2 years ago

5 0

<h3>Answer: $34,193.07</h3>

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Work Shown:

$A = P*e^{rt}\\\\50,000 = P*e^{0.019*20}\\\\50,000 = P*e^{0.38}\\\\P = \frac{50,000}{e^{0.38}}\\\\P \approx 34,193.0704606\\\\P \approx 34,193.07\\\\$

Side note: the 'e' is a special constant roughly equal to 2.71828...