Find the principal needed now to get the given amount that i

Find the principal needed now to get the given amount; that is, find the present value. To get $70 after 13/4 years at 10% compounded continuously The present value of $70 Is $

Solution

A=70 , r =10/100 =0.1 , t =1(3/4)=7/4 years

compounder continously

principal needed(present value)=A/e^rt

principal needed(present value)=70/e^0.1*(7/4)

principal needed(present value)=58.76$