How much money has to be invested at 2.3% interest compounded continuously to have $41,000 after 17 years

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Kolby York

Mathematics

30 July, 12:30

How much money has to be invested at 2.3% interest compounded continuously to have $41,000 after 17 years

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Gerald Dickerson · Answer 1

We have to calculate how much money has to be invested at 2.3% interest compounded continuously to achieve $41,000 after 17 years. The formula is: A = P * (1 + r) ^t, where A = $41,000, r = 0.023 and t = 17. 41,000 = P * (1 + 0.023) ^17; 41,000 = P * (1.023) ^17; 41,000 = P * 1.4719; P = 41,000 : 1.4719; P = 27,855.15. Answer: It has to be invested $27,855.