SOLUTION: WHat amount must be deposited into a certificate of deposit today so that the investment will grow to 20,000 dollars in 18 years if it compounded continuously at 6%?

Question 936105: WHat amount must be deposited into a certificate of deposit today so that the investment will grow to 20,000 dollars in 18 years if it compounded continuously at 6%?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
We will use this formula:

Given info: A = 20000, r = 0.06, t = 18

Notes: P is unknown, e is a constant (e = 2.718 approximately)

I used a calculator here

Rounded to the nearest cent

You need to deposit $6,791.91
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