O EXPONENTIAL AND LOGARITHMIC FUNCTIONSFinding the initial amount in a word problem on continuouse comp...How much should be invested now at an interest rate of 6% per year, compounded continuously, to have $1500 in three years?Do not round any intermediate computations, and round your answer to the nearest cent.?

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Asked Sep 26, 2019
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O EXPONENTIAL AND LOGARITHMIC FUNCTIONS
Finding the initial amount in a word problem on continuouse comp...
How much should be invested now at an interest rate of 6% per year, compounded continuously, to have $1500 in three years?
Do not round any intermediate computations, and round your answer to the nearest cent.
?
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O EXPONENTIAL AND LOGARITHMIC FUNCTIONS Finding the initial amount in a word problem on continuouse comp... How much should be invested now at an interest rate of 6% per year, compounded continuously, to have $1500 in three years? Do not round any intermediate computations, and round your answer to the nearest cent. ?

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Expert Answer

Step 1

To determine the amount that should be invested to get a return of $ 1500 in three provided that the rate of interest is 6% per year compounded continuously.

Step 2

The accumulated amount A after t years for principal amount P invested at a rate of interest r compounded continuously is given by the formula:

A Pe
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A Pe

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Step 3

Consider that the rate of interest is 6%, accumulated amount...

A 1500
r 6%= 0.06
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A 1500 r 6%= 0.06

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