SOLUTION: Hannah wants to have $5500 to help pay for a new deck in 10 years. If she wants to put her money into an account earning 7.25% interest compounded continuously, how much should she

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Question 1198966: Hannah wants to have $5500 to help pay for a new deck in 10 years. If she wants to put her money into an account earning 7.25% interest compounded continuously, how much should she invest now, so that she will have $5500 in 10 years?
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!
The continuous compounding interest formula from Financial Mathematics is given as follows:

A=Pe%5E%28rt%29
r=7.25% =0.0725
A=5500
t=10

5500=Pe%5E%280.0725%2A10%29
5500=Pe%5E%280.725%29
5500%2Fe%5E%280.725%29=P
P=5500%2F2.0647310999664863
P=2663.79

Answer: she should invest now 2663.79