algebra

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On the day a child was born, a lump sum P was deposited in a trust fund paying 6.5% interest compounded continuously. Use the balance A of the fund on the child's 29th birthday to find P. (Round your answer to the nearest cent.)
A = $5,000,000
P = $1

  • algebra -

    5*10^6 = P*e^(29*0.065)
    15.4249485 = lnP + 1.885000
    lnP = 13.5399485
    = $759,145.30

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