Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Ask your questions and receive precise answers from experienced professionals across different disciplines. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

How much should be invested now at an interest rate of 6% per year, compounded continuously, to have $2500 in five years?

Sagot :

rhunpluto

Answer:

$1,923.08.

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

P = 2500 / ( 1 + (0.06 × 5)) = 1923.0769230769

P = $1,923.08

The principal investment required to get a total amount, principal plus interest, of $2,500.00 from simple interest at a rate of 6% per year for 5 years is $1,923.08.

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.