Needed now to get $700 in 3 years at 7% compounded continuously.

Thank you.

Printable View

- Nov 3rd 2008, 03:49 PMbeachbunny619[SOLVED] Find the principal
Needed now to get $700 in 3 years at 7% compounded continuously.

Thank you. - Nov 3rd 2008, 07:29 PMJameson
So continuous compounded interest is the Pe^(rt) formula. So $\displaystyle 700=P_0 e^{.07*3}$.

Solve for P. - Nov 4th 2008, 01:04 PMbeachbunny619
How do I solve that?

I used ln 700/ ln e(.07*3)

31.20 but thats not right??? - Nov 5th 2008, 06:19 AMjonah
$\displaystyle

700 = P_0 e^{.07 * 3} \Leftrightarrow P_0 = \frac{{700}}{{e^{.07 * 3} }}

$ - Dec 3rd 2008, 03:33 AMHareza
S=Pe^it

700 = Pe^7%x3

700 = 1.23367806 P

P = $567.41

is it the answer correct ?? - Dec 3rd 2008, 08:03 AMjonah