Determining the amount of money P that should be invested at rate r to produce a balance of $100,000 in t years.

Question

Complete the table by determining the amount of money P (present value) that should be invested at rate r to produce a balance of $100,000 in t years.

r = 5%

Compounded continuously

Answer 1

Step 1:

The amount is  $.

The rate of interest is .

The principle amount is .

The time period is years.

Formula for compounding continuously .

The principle amount in year.

.

Step 2:

The principle amount in years.

.

The principle amount in years.

.

The principle amount in years.

.

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Step 3:

The principle amount in years.

.

The principle amount in years.

.

Solution :