Complete the table below giving the amount P that must be in

Complete the table below giving the amount P that must be invested at interest rate 5.5 % compounded continuously to obtain a balance of A = $ 130000 in t years.

Solution

we have the formula

A=P(1+r/100)^t   where P is the initial balance   t=number of years   r=annual interest rate    A=compounded amount

A=130000          r=5.5

so P=A/(1+r/100)^t

hence for t=1

P=130000(1+5.5/100)¹=$123222.7488 [answer]

for t=10

P=130000/(1+5.5/100)¹⁰=$76105.97533 [answer]

for t=20

P=130000/(1+5.5/100)²⁰=$44554.76523 [answer]

for t=30

P=130000/(1+5.5/100)³⁰=$26083.72203 [answer]

for t=40

P=130000/(1+5.5/100)⁴⁰=$15270.2085 [answer]

for t=50

P=130000/(1+5.5/100)⁵⁰=$8939.64701 [answer]