SOLUTION: What amount must be invested at 6.5%, compounded continuously, so that it will be worth R25 000 after 8 years?

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Question 1094074: What amount must be invested at 6.5%, compounded continuously, so that it will be worth R25 000 after 8
years?
Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
Continuous compounding is calculated by P_1=P_0*e^rt, where P_1 is the expected amount, P_0 is the beginning amount, r is the interest, and t is time. So:
25000=P_0*e^0=.065*8
25000/e^0.52=P_0
P_0=Rs 14863.0137
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