Word problem based on compounded continuously, how much does she need, show work

Calculus
Tutor: None Selected Time limit: 1 Day

Jul 18th, 2015

Thank you for the opportunity to help you with your question!

There are 360 days in a year,  so n = 360

The formula we use is

A = P(1 + r/n)^nt     where r is the annual interest rate and n is the number of times the interest is compounded in a year.   A is the final amount and P is the principle or initial amount.

Then,

20,000 = P(1 + 0.06/360)^(360*8)

20,000 = P(1.00067)^2880

20,000 = P(6.8153)

P = 20,000/6.8153

P = $2934.58

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 18th, 2015

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Jul 18th, 2015
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Jul 18th, 2015
May 26th, 2017
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