If you want your retirement account to have a balance of $200000 when you retire in 50 years, how much should you invest now at a rate of 8% interest compounded continuously?

Question

amistre64 · Answer

A = Pe^(rt)

solve for P and input the given values from the question

amistre64 · Answer

or input then solve ... either way

anonymous · Answer

I did and got it to equal 3.05 as the initial value.. which the book says is wrong

amistre64 · Answer

can you tell me what you inputed for the values of A, r, t ?

anonymous · Answer

i made a=200,000 r=.08 t=50

amistre64 · Answer

those are good inputs .... must be in the solving for P process $$A=Pe^{rt}$$ $$A/e^{rt}=P$$ $$200000/e^{.08*50}=P$$ http://www.wolframalpha.com/input/?i=200000%2Fe%5E%28.08*50%29

anonymous · Answer

Thank you!