SOLUTION: After building your new home, you decide you would like to install an in-ground pool in 7 years. How much do you need to invest now at 5.25% interest compounded continuously to ha

Algebra ->  Finance -> SOLUTION: After building your new home, you decide you would like to install an in-ground pool in 7 years. How much do you need to invest now at 5.25% interest compounded continuously to ha      Log On


   

Question 1099997: After building your new home, you decide you would like to install an in-ground pool in 7 years. How much do you need to invest now at 5.25% interest compounded continuously to have the $30,000 you need to build the pool?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
This is P=Poe^(rt), r is the rate (decimal) and t=7
30000=Poe^(.0525*7); the e value is e^(.3675)=1.444
divide 30000 by that without rounding, and it is $20773.90