To get $120 after 2.25 years at 7​% compounded continuously

Question

Find the principal needed now to get the given amount; that is, find the present value.

Answer 1

final amount = present amount x e^(rate x time)

120 = P x e^(0.07 x 2.25)

P = $102.52

Answer 2

For this, you would use the following equation. A=Pert

A=amount
P=Principal
e= e constant
r=rate
t=time

Plug in the values.

120=Pe.07*2.25

=$102.51