SOLUTION: How much should you invest in a continuously compounded account at an annually interest rate of 6% if you want exactly $8000 after four years?

Question 971373: How much should you invest in a continuously compounded account at an annually interest rate of 6% if you want exactly $8000 after four years?
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
How much should you invest in a continuously compounded account at an annually interest rate of 6% if you want exactly $8000 after four years?
***
Formula for a continuous compounding account: A=Pe^rt, P=initial investment, r=interest rate, t=years, A=amt after t-yrs
For given problem:
r=.06
t=4
A=8000
..
P=A/e^rt=8000/e^(.08*4)=8000/e^(.32)=5809.19
How much should you invest in the continuously compounded account? $5809
RELATED QUESTIONS
Suppose you invest $1600 at an annual interest rate of 4.6% compounded continuously. How... (answered by math_helper)

Suppose you invest $1600 at an annual interest rate of 4.6% compounded continuously. How... (answered by rfer)

At what rate do you need to invest money into a bank account earning continuously... (answered by ikleyn)

At what rate do you need to invest money into a bank account earning continuously... (answered by Theo)

At what rate do you need to invest money into a bank account earning continuously... (answered by ikleyn)

If I invest $150.00 in an account for ten years at a 6% interest rate compounded... (answered by solver91311)

My teacher didn't give me any formulas for these things.. please help me!! T~T 1. You (answered by KMST)

You invest $4,400 in an account that pays an Interest rate of 6.5% compounded... (answered by ikleyn)

You invest $2,000 in an account that is compounded annually at an interest rate of 5%.... (answered by josgarithmetic)