SOLUTION: What amount must be deposit so that the investment will grow to $12000,in 10 years at 6% compounded continuously?

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Question 978381: What amount must be deposit so that the investment will grow to $12000,in 10 years at 6% compounded continuously?
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

The following applies only to interest compounded continuously.

The formula for interest that is compounded is:

A=Pe%5E%28rt%29

A represents the amount of money after a certain amount of time
P represents the principle or the amount of money you start with
r represents the interest rate and is always represented as a decimal
t represents the amount of time in years
given:
A=12000
r=0.06
t=10
to find:P
A=Pe%5E%28rt%29
P=A%2Fe%5E%28rt%29
P=12000%2Fe%5E%280.06%2A10%29
P=12000%2Fe%5E%280.6%29
P=12000%2Fe%5E%280.6%29.........e%5E%280.6%29=1.82212
P=12000%2F1.82212
P=6585.74