SOLUTION: Cindy will require $11,000.00 in two years. How much money should she invest now at 9% compounded continuously so she will have that $11,000.00?
I know the formula, but I don't
Algebra ->
Logarithm Solvers, Trainers and Word Problems
-> SOLUTION: Cindy will require $11,000.00 in two years. How much money should she invest now at 9% compounded continuously so she will have that $11,000.00?
I know the formula, but I don't
Log On
Question 31331: Cindy will require $11,000.00 in two years. How much money should she invest now at 9% compounded continuously so she will have that $11,000.00?
I know the formula, but I don't know how to figure it out.
A = Pe^rt
Thanks for your help Found 2 solutions by Nate, stanbon:Answer by Nate(3500) (Show Source):
You can put this solution on YOUR website! the formula i am more used to is this for compound continuously:
y=a(1+r)^t
a=initial amount
y=increased amount
r=rate
t=time
-------------------------------------------------------------------------
y=a(1+r)^t
11000=a(1.09)^2
(11000)/(1.09)^2=a
about $9,258.48
You can put this solution on YOUR website! A=$11000; r=0.09; t=2; you need to find the Principal or "P"
11000=Pe^(0.09(2))
11000=Pe^0.18
11000=P(1.197)
P=11000/1.19
P=$9187.97
Cheers,
Stan H.
(