Question

if george wants to have 40,000 in 18 years in a long term cd at 5.5% int. continously compounded how much would he have to invest? did I do it right? 40,000=x(1+.055 X 216) coming out to x= 3105.6 ???

Answer 1

Continuous Compound formula is \[F=Pe^{rt}\]Where F=Future amount
P=principal amount
r=rate
t=period in year
e=constant