Compound Interest How much money should you deposit into a c

Compound Interest. How much money should you deposit into a certificate of deposit that pays 6% a year compounded continuously to have $60,000 in the account in 18 years?

Solution

Compounded continously :

Amount = Principal(e^rate*time)

rate = 6% ; time = 18yrs ; Amount = $60,000

Find Principal : 60,000 = P(e^(0.06*18)

60,000 = P*2.944

P = $ 20380.43