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How much money invested at 6% compounded continuously for 5 years will result in $916?
using A(t) = P*e^rt
Given:
A(t) = $916
r = 6% = 0.06
t = 5 years
P = amount invested
We can use the formula for continuously compounded interest:
A(t) = P*e^(rt)
Plugging in the values we have:
916 = P*e^(0.06*5)
916 = P*e^(0.3)
Now, we need to solve for P:
916 = P*e^(0.3)
Divide both sides by e^0.3:
916/e^0.3 = P
916/e^0.3 ≈ P
Using a calculator, we get:
P ≈ $751.52
Therefore, investing approximately $751.52 at 6% compounded continuously for 5 years will result in $916.