Grace is going to invest in an account paying an interest rate of 3.8% compounded
continuously. How much would Grace need to invest, to the nearest cent, for the
value of the account to reach $46,000 in 13 years?
PLEASE HELP ME URGENT


Answer :

Answer:

P≈28068.32

Step-by-step explanation:

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Grace needs to invest, to the nearest cent, for the value of the account to reach $46,000 in 13 years is 27705.78944.

We have given that,

Grace is going to invest in an account paying an interest rate of 3.8% compounded continuously.

We have to determine how much would Grace need to invest, to the nearest cent, for the value of the account to reach $46,000 in 13 years.

What is the formula of a compounded continuously?

[tex]A=Pe^{rt}[/tex]

A=46000, t=13  ,r=0.038

[tex]Pe^{0.039\left(13\right)}=46000[/tex]

[tex]Pe^{0.039\left(13\right)}=46000[/tex]

[tex]\frac{Pe^{0.039\cdot \:13}}{e^{0.507}}=\frac{46000}{e^{0.507}}[/tex]

[tex]P=\frac{46000}{e^{0.507}}[/tex]

[tex]\quad P=27705.78944[/tex]

Therefore, Grace needs to invest, to the nearest cent, for the value of the account to reach $46,000 in 13 years is 27705.78944.

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