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an investment is expected to pay 5 per year compounded continuously. If you want the value of the investment to be $700,000 after 25 years, how much should you invest initially? Round to the nearest dollar

Respuesta :

sqdancefan
The multiplier for continuous compounding is e^(rt). You want
  700,000 = P·e^(0.05·25) ≈ 3.490343P
Then
  700,000/3.490343 = P

You should invest $200,553 initially.

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