SOLUTION: Hannah wants to have $ 7500 to help pay for a new deck in 13 years. If she wants to put her money into an account earning 6.5% interest compounded continuously, how much should she

Question 1128658: Hannah wants to have $ 7500 to help pay for a new deck in 13 years. If she wants to put her money into an account earning 6.5% interest compounded continuously, how much should she invest now, so that she will have $ 7500 in 13 years?

Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

With continuous compounding, the amount A after t years at a rate of r, with an initial principal P, is given by the formula

So the amount P required for the beginning principal to get the final amount A is

For this example,

Evaluate using a calculator....
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