What would it be

Question

Assume that interest is compounded continuously at a nominal rate of 4.7% An investor wants an investment to be worth $13000 alter 11 years. Determine the amount the investor must now invest to obtain this goal. Give an exact answer.

Answer 1

13000= (A) e^.047x11 where A is initial value

13000 = (A) e^.517

A = (13000)/e^.517

A = 7751.9882 which for the purpose of this problem would round to nearest cent or 7751.99