SOLUTION: How much must be invested at 8% interest compounded continuously if 20 years from now the value of the account is to be $100,000? Round your answer to the nearest highest dollar.

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Question 387285: How much must be invested at 8% interest compounded continuously if 20 years from now the value of the account is to be $100,000? Round your answer to the nearest highest dollar.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
How much must be invested at 8% interest compounded continuously if 20 years from now the value of the account is to be $100,000? Round your answer to the nearest highest dollar.
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A(t) = P*e^(rt)
100,000 = P*e^(0.08*20)
100,000 = P*4.9530
P = 100,000/4.9530
P = $20,189.65
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Cheers,
Stan H.