The function $f(t)=Pe^(rt)$ describes the amount $P$ will become if invested for $t$ years at $r%$ per annum compounded continuously. If a sum becomes $$246.40$ at $4%$ in $4$ years, what is the amount invested?

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Answer 1 · 2017-06-20T12:44:40

$P~=210$

As we have the function $f(t)=Pe^(rt)$ and $f(4)=246.4$

we have $246.4=Pe^(0.04xx4)=Pe^(0.16)$

Hence $P=246.4/e^(0.16)=246.4/1.173510871=209.968~=210$

The function f(t)=Pe^(rt)f(t)=Pe^(rt) describes the amount PP will become if invested for tt years at r%r% per annum compounded continuously. If a sum becomes $246.40$246.40 at 4%4% in 44 years, what is the amount invested?