SOLUTION: randy invested his inheritance in an account that paid 6.9% interest, coupounded continuously. after 5 years, he found that he now had $52,565.56. what was the orginal amount of hi

Question 685605: randy invested his inheritance in an account that paid 6.9% interest, coupounded continuously. after 5 years, he found that he now had $52,565.56. what was the orginal amount of his inheritance?

Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
randy invested his inheritance in an account that paid 6.9% interest, coupounded continuously. after 5 years, he found that he now had $52,565.56. what was the orginal amount of his inheritance?
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Formula for continuous compounding:A= Pe^rt, P=initial investment, r=rate of interest, A=amt after t years
52565.56=Pe^(.069*5)=Pe^.345
P=52565.56/e^.345=37228
orginal amount of his inheritance=$37,228.00..
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