Asked by Mary Ann

Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.)
Achieve $225,500 at 8.55% compounded continuously for 8 years, 155 days.

I use e for compound continuousy A=Pe^(rt).so I did 225,500=Pe^(.0855*8.42)than I divided both sides by e^(.0855*8.42) than e=2.71, than I did
225,500/e^(.0855*8.42)1097725.13this answer does not look right where did I go wrong. Thank you for your help.
Answered by Reiny
my equation, (very close to yours)

225500 = PV e^(8.4246575(.0855))
225500 = PV e^(.720308219) , now press 2nd ln
225500 = PV (2.055066524)
PV = 109,728.81

I let the calculator carry all the decimal places and only rounded off my final answer to the nearest cent.
You were off by appr a factor of 10
Answered by Mary Ann
Thank you very much Reiny it is greatly appreciate that you give your time to help others.
Answered by Marlene
How did you get from
225500= PV (2.055066524)
to
PV=109,728.81 ???????
Answered by marla
How did you do this on the calculator? I can not figure out how you got that answer
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