Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.)

Question

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.

Answer 1

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

Answer 2

Thank you very much Reiny it is greatly appreciate that you give your time to help others.

Answer 3

How did you get from
225500= PV (2.055066524)
to
PV=109,728.81 ???????

Answer 4

How did you do this on the calculator? I can not figure out how you got that answer