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Another question regarding algebra word problem

label Algebra
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Find the present value, using the present value formula and a calculator. (Round answer to the nearest cent.)

Achieve $225,500 at 8.55% compounded continuously for 8 years, 145 days.
Nov 25th, 2014

Formula for compounded continuously FV= PVe^rt

FV = 225500
r=8.55% = 0.0855
t = 8years,145 days = 8.4

so, 225500 = PVe^0.0855*8.4
or, PV = 225500/e^0.0855*8.4 = $109960.38 (Answer)


Nov 25th, 2014

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