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Sarah S.

asked • 12/10/16

Continuous compound

How much would a person have to invest at 4.5% compounded continuously to have $10,000 five
years from today?

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Kenneth S. answered • 12/10/16

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A(t) = A(0)e^0.045t

10,000 = Pe^0.045(5) where P is 'present value'

Solve for P!

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Sarah S.

What would P be?

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12/10/16

Kenneth S.

Since 10,000 = Pe^0.045(5) where P is 'present value'

you divide both sides of this equation by e^0.045(5) to solve for P.

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12/10/16

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