an increase of 10.6% gives a multiplying factor of 1.106 times more than what it was before use this instead
Hi I'm trying to solve this compounded continuously question.
A bank pays interest at a rate of 10.6%, compounded continuously. How much should be invested so as to have 11 thousand dollars in 6 years?
Formula: Ae^rt
So I have:
11000e^(10.6)(6) =240809024.6
Thats not correct huh.
no. it says compounded CONTINUOUSLY. we indeed use the formula
the problem is, the original poster does not know what to plug in where. he/she plugged in 11000 for when, in fact, is what you should be solving for.
you want to solve for
(as a decimal, 10.6% = 0.106)