SOLUTION: I have a word problem that am having trouble figuring out how to work it out to come up with the answer.
Randy invested his inheritance in an account that paid 6.1% interest, co
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Randy invested his inheritance in an account that paid 6.1% interest, co
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Question 314889: I have a word problem that am having trouble figuring out how to work it out to come up with the answer.
Randy invested his inheritance in an account that paid 6.1% interest, compounded continuously. After 5 yrs. he found he now had 51,426.94. what was the original amount of his inheritance?
Possible answers: 38,908; 36,908; 23,123.88;37,908
please show work...this is very hard for me as I have never been good at math. Thanks in advance. Answer by solver91311(24713) (Show Source):
You can put this solution on YOUR website!
The formula for determining the Future Value, , of an investment with a Present Value, , at rate of interest compounded continuously for years is:
where is the base of the natural logarithms.
We wish to solve for given that , and
First rearrange the formula (multiply both sides by ):
