Question

How much money needs to be deposited now into an account to obtain $1,500 in 7 years if the interest rate is 5% per year compounded continuously?

Answer 1

$~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \ 1500\\ P=\textit{original amount deposited}\\ r=rate\to 5\%\to \frac{5}{100}\dotfill &0.05\\ t=years\dotfill &7 \end{cases} \\\\\\ 1500=Pe^{0.05\cdot 7}\implies \cfrac{1500}{e^{0.35}}=P\implies 1057.03\approx P$