ALGEBRA 1
posted by amber on .
Cindy will require $15,000 in 2 years to return to college to get an MBA degree. How much money should she ask her parents for now so that, if she invests it at 12% compounded continuously, she will have enough for school?

The continuous interest formula is
A=Pe^{rt}
A=future amount, 15000
P=principal (unknown)
e=euler's constant, 2.71828..
r=rate of interest, 0.12 for 12%
t=time in years (for annual rate of interest), 2 years
So
15000=P*e^{0.12*2}
P=15000/(e^{0.24})
Can you take it from here?
Do a check by the reverse calculation, to see if
P*e^{0.24} gives 15000.