Thread: Compound Interest question

I am having trouble figuring this problem out; it's confusing me. I appreciate the help

After 18 years of interest compounded continuously, you have $60,000. What is your principle amount?

I'm not sure how to do this backwards from the normal way

Pe^(rt)

Thanks for the help!

Originally Posted by Harryhit4

I am having trouble figuring this problem out; it's confusing me. I appreciate the help

After 18 years of interest compounded continuously, you have $60,000. What is your principle amount?

I'm not sure how to do this backwards from the normal way

Pe^(rt)

Thanks for the help!

Without r and t that cannot be solved further

Oh, REALLY sorry, I forgot to add the rate! It's 6.25%. Sorry, not thinking straight - my last day of finals is tomorrow with math and spanish.

Originally Posted by Harryhit4

I am having trouble figuring this problem out; it's confusing me. I appreciate the help

After 18 years of interest compounded continuously, you have $60,000. What is your principle amount?

I'm not sure how to do this backwards from the normal way

Pe^(rt)

Thanks for the help!

Originally Posted by Harryhit4

Oh, REALLY sorry, I forgot to add the rate! It's 6.25%. Sorry, not thinking straight - my last day of finals is tomorrow with math and spanish.

Originally Posted by e^(i*pi)

Without r and t that cannot be solved further

Ah right, I overlooked t myself. Assuming 6.25% is per annum:



Put into the calculator and solve

Originally Posted by e^(i*pi)

Ah right, I overlooked t myself. Assuming 6.25% is per annum:



Put into the calculator and solve

Thank you very much for your help. It came out to 19479.15