Question

How much should you invest in a continuously compounded account at an annual interest rate of 6% if you want exactly $8000 after four years? (Round to the nearest cent)

Answer 1

$~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \ 8000\\ P=\textit{original amount deposited}\\ r=rate\to 6\%\to \frac{6}{100}\dotfill &0.06\\ t=years\dotfill &4 \end{cases} \\\\\\ 8000=Pe^{0.06\cdot 4}\implies 8000=Pe^{0.24}\implies \cfrac{8000}{e^{0.24}}=P\implies 6293.02\approx P$