how much money has to be invested at 3.3% interest compounded constinuously to have $45,00 after 19 years

Question

kropot72 · Answer

The formula for continuous compounding is
$$A=Pe ^{rt}$$
where, P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of years
A = amount after time t
 To solve this question substitute the given values and solve for P:
$$45000=Pe ^{(.033\times 19)}$$
Hint: First take natural logs of both sides of the equation.