SOLUTION: What amount must be invested at 6.5%, compounded continuously, so that it will be worth R25 000 after 8 years?

SOLUTION: What amount must be invested at 6.5%, compounded continuously, so that it will be worth R25 000 after 8 years?

Algebra.Com

Question 1094074: What amount must be invested at 6.5%, compounded continuously, so that it will be worth R25 000 after 8
years?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
Continuous compounding is calculated by P_1=P_0*e^rt, where P_1 is the expected amount, P_0 is the beginning amount, r is the interest, and t is time. So:
25000=P_0*e^0=.065*8
25000/e^0.52=P_0
P_0=Rs 14863.0137
☺☺☺☺
RELATED QUESTIONS
What amount must be deposit so that the investment will grow to $12000,in 10 years at 6%... (answered by MathLover1)

what will be the total amount after 8 years and 4 months if 2475 is invested at 2.75%... (answered by Boreal)

Continuously Compounded Interest: How much would $900 invested at 6% interest... (answered by ankor@dixie-net.com)

If $7,000 is invested at 4% compounded quarterly, what is the amount after 8 years?... (answered by ikleyn)

If Corliss invested $100 at an annual rate of 8% compounded continuously, what amount to... (answered by stanbon)

WHat amount must be deposited into a certificate of deposit today so that the investment... (answered by jim_thompson5910)

How much would $100 invested at 4% interest compounded continuously be worth after 7... (answered by ewatrrr)

How much would $400 invested at -7% interest compounded continuously be worth after 2... (answered by jim_thompson5910)

What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly... (answered by jim_thompson5910)