Answer:
Given that,
She wants $90,000 in 4 yrars that is compounded continously at 7%
To find the initial amount.
we have the formula to find amount that is compounded continuously is,
[tex]A=P(e)^{rt}[/tex]
where P is the initial amount, r is the rate of interest, t be the number of years.
Substitute the values we get,
(that is, A=90000, r=7, t=4)
[tex]90000=P(e)^{7\times4}[/tex][tex]90000=P\times1.44625[/tex][tex]P=\frac{90000}{1.44625}[/tex][tex]P=62,229.9049[/tex]
Exact Amount is,
[tex]P\approx62,230[/tex]
Exact Amount is $62,230
Amount rounded to two decimal,
[tex]P\approx62,229.91[/tex]
Amount rounded to two decimal is $62,229.91
