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For retirement an investor wants to accumulate $250,000 in forty years. How much should he invest...

For retirement an investor wants to accumulate $250,000 in forty years. How much should he invest in order to reach his goal if money earns 9.5% compounded continuously? ($5592.69)

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Answer #1

Continuously compounding interest formula:

Where,
A = Amount in the future
P = Principal amount invested
r = rate of interest in decimal form (9.5% = 0.095)
t = time in years
e = mathematical constant (with value = 2.7182818)

Therefore,

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