Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.)

Achieve $225,500 at 8.55% compounded continuously for 8 years, 155 days.

I use e for compound continuousy A=Pe^(rt).so I did 225,500=Pe^(.0855*8.42)than I divided both sides by e^(.0855*8.42) than e=2.71, than I did
225,500/e^(.0855*8.42)1097725.13this answer does not look right where did I go wrong. Thank you for your help.

my equation, (very close to yours)

225500 = PV e^(8.4246575(.0855))
225500 = PV e^(.720308219) , now press 2nd ln
225500 = PV (2.055066524)
PV = 109,728.81

I let the calculator carry all the decimal places and only rounded off my final answer to the nearest cent.
You were off by appr a factor of 10

Thank you very much Reiny it is greatly appreciate that you give your time to help others.

How did you get from

225500= PV (2.055066524)
to
PV=109,728.81 ???????

How did you do this on the calculator? I can not figure out how you got that answer

To find the present value using the present value formula for continuous compounding, you correctly started with the formula: A = Pe^(rt), where A is the future value, P is the present value, r is the interest rate, and t is the time in years.

However, it seems that you made a mistake while calculating the exponent. The time is given as 8 years and 155 days, which is a total of 8 + 155/365 = 8.42 years. It appears that you rounded this value to 8.42, but the correct value for the exponent should be the exact decimal representation without rounding.

Let's recalculate the present value by following the correct steps:

1. Rewrite the formula: A = Pe^(rt)
2. Substitute the given values: 225,500 = Pe^(0.0855*8.42)
3. Divide both sides of the equation by e^(0.0855*8.42) in order to isolate the present value P.
This step should be: P = 225,500 / e^(0.0855*8.42)
4. Use a calculator to evaluate the exponent first: e^(0.0855*8.42)
This should be approximately equal to: e^(0.71901) ≈ 2.0524
5. Finally, divide the future value by the calculated exponent:
P = 225,500 / 2.0524
P ≈ 109,872.68 (rounded to the nearest cent)

Therefore, the present value, rounded to the nearest cent, is approximately $109,872.68.

Please note that the rounding result may slightly differ depending on the number of decimal places used during intermediate calculations.