Question

How much money invested at 7% compounded continuously for 6 years will yield $500?

remember: a = pe^rt

Answer 1

$328.52

Explanation:

let p = x, t = 6 years and r = 0.07. now the formula is x*e^0.42 = 500. e^0.42 is approx. 1.522. divide 500 by that to get about $328.52