SOLUTION: Cheryl will be buying a new vehicle for $15,000 in 3 years. How much would you have to invest now at 5% compounded continuously to have enough to purchase the vehicle 3 years from

Question 1080397: Cheryl will be buying a new vehicle for $15,000 in 3 years. How much would you have to invest now at 5% compounded continuously to have enough to purchase the vehicle 3 years from now?
Answer by rapture(86) (Show Source): You can put this solution on YOUR website!
Continuously compounded interest means that your principal is constantly earning interest and the interest keeps earning on the interest earned.

Use the formula A = Pe^(rt).

Solve for A when P = 15,000, r = 0.05, and t = 3
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