SOLUTION: How much money, invested at an interest rate of r % per year compounded continuously, will amount to A dollars after t years? (Round your answer to the nearest cent.) A = 15,000

Question 1148011: How much money, invested at an interest rate of r % per year compounded continuously, will amount to A dollars after t years? (Round your answer to the nearest cent.)
A = 15,000, r = 4.9, t = 4
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
formula for this would be A = P * e ^ (r * t)
A is the future value.
P is the present value.
r is the interest rate per year = percent interest rate per year / 100.
t is the number of years.
in this formula, solve for P to get:
P = A / e ^ (r * t)
when A = 15000 and r = 4.9% / 100 = .049 and t = 4, the formula becomes:
P = 15000 / e ^ (.049 * 4).
solve for P to get:
P = 12330.18352
to have 15,000 dollars in 4 years compounded continuously at 4.9% per year, 12,330.18352 dollars would need to be invested now.

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