+0  
 
0
38
1
avatar

Lily is going to invest in an account paying an interest rate of 5.6% compounded continuously. How much would Lily need to invest, to the nearest cent, for the value of the account to reach $78,000 in 9 years?

 Aug 30, 2021
 #1
avatar
0

PV ==FV / e^(rt)

 

PV ==78 / e^(0.056 * 9)

      ==78 / e^(0.504)

     ==78 /  1.6553294....

     == $47.12 - what Lily needs to invest today.

 Aug 30, 2021

18 Online Users