Determine the principal P that must be invested at interest rate r, compounded continuously, so that $1,300,000 will be available for retirement in t years. r = 15%, t = 20
STEP 1: State the quantities given in the problem.
A =
r =
t =
STEP 2: Substitute the values of A, r, and t into the compound interest formula
A = Peʳᵗ.
= P*e²⁰
STEP 3: Divide to isolate P.
= P
STEP 4: Simplify to find P.
P ≈ $
