Question 1003495
An investor wants to have a retirement nest egg of $100,000 and estimates that her investment now will grow at 4% compounded continuously for 30 years. What amount should she invest now to achieve this goal? (do not approximate until your final answer)please include steps
Formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, A=amt after t-years
100,000=Pe^.04*30
P=100,000/e^1.2=$30,119.42
What amount should she invest now to achieve this goal?$30,119