Question 1138632
the formula for continuous compounding is f = p * e^(rt)


f is the future value
p is the present value
r is the interest rate per time period
t is the number of time periods
e is the scientific constant 2.718281828.....


in your problem:


p = what you want to find
f = 3025
r = 3.979% / 100 = (.03979/12) = per month
t = 17 months


formula becomes 3025 = p * e^(.03979/12 * 17)


solve for p to get p = 3025 / (e^(.03979/12 * 17) = 2859.20017.