document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1110795>Question 1110795</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that your brother wants to have $119000 to buy video equipment in five years. If he can invest his money now at 12.5% compounded continuously, then how much must he invest today? Round your answer to the nearest dollar. Do not use a dollar sign or a comma </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #725796 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=725796\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula for continuous compounding is f = p * e^(rt)\r<BR>\n" );
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document.write( "f is the future value.<BR>\n" );
document.write( "p is the present value.<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "t is the number of time periods.\r<BR>\n" );
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document.write( "in your problem, the equation becomes 119000 = p * e^(.125*5)\r<BR>\n" );
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document.write( "solve for p to get p = 119000 / (e^(.125*5))\r<BR>\n" );
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document.write( "result is p = 63696.10999\r<BR>\n" );
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document.write( "round to nearest dollar to get p = 63696\r<BR>\n" );
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document.write( " </SPAN>\n" );
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