SOLUTION: how much money must be invested at 11 and half percent interest compounded continiously to yield 3000 after 2 years

Question 701178: how much money must be invested at 11 and half percent interest compounded continiously to yield 3000 after 2 years
Found 2 solutions by nerdybill, Alan3354:
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
how much money must be invested at 11 and half percent interest compounded continiously to yield 3000 after 2 years
.
Continuously compounded interest formula:
A = Pe^(rt)
Plug in the data from the problem to get:
3000 = Pe^(.115*2)
3000 = Pe^(.23)
3000/e^(.23) = P
$2383.60 = P

Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
how much money must be invested at 11 and half percent interest compounded continiously to yield 3000 after 2 years
----------------
FV = PV*e^rt PV = Present Value, amount in question.
3000 = PV*e^(0.115*2)
PV = 3000*e^-0.23
PV = 2383.60
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