Astudent wants to save $8,000 for college in 5 years how much should be put into an account that pays 5.2% annual interest compounded continuously

You will want to use the formula for continuously compounded interest:



where is the resulting amount, is the initial amount, is the mathematical constant (2.718...), is the interest (in percentage), and is the time in years. Plugging these numbers into the equation gives the following:



Solving for will give you the initial amount that should be put into the account.

-2x + 7 = 7

subtract 7 from both sides.

-2x = 0

divide both sides by -2.

x = 0

the value of x is equal to 0.