SOLUTION: If an investment earns 9% compounded continuously, how much should you deposit now to have 25,000 (A) 36 months from now? � � (B) 9 years from now? I'm sorry if this ha

Question 742536: If an investment earns 9% compounded continuously, how much should you deposit now to have 25,000
(A) 36 months from now? � � (B) 9 years from now?

I'm sorry if this has already been answered, but I couldn't find a similar problem...
Thanks!
Answer by fcabanski(1391) (Show Source): You can put this solution on YOUR website!
Is the interest rate an annual rate?

The formula for compound interest is where P is principal amount, r is the annual rate, t is the time in years, A is the amount after that time, and e is the constant approx. 2.71828183

To find P...apply some algebra:
A. 36 months is 3 years. = $19,084.49

B. 9 years: = $11,121.45

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