Answer:
[tex]\$400.92[/tex]
Step-by-step explanation:
we know that
The formula to calculate continuously compounded interest is equal to
[tex]A=P(e)^{rt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
e is the mathematical constant number
we have
[tex]t=19\ years\\ A=\$1,230\\ r=5.9\%=5.9/100=0.059[/tex]
substitute in the formula above
[tex]1,230=P(e)^{0.059*19}[/tex]
solve for P
[tex]1,230=P(e)^{1.121}[/tex]
[tex]P=1,230/(e)^{1.121}[/tex]
[tex]P=\$400.92[/tex]
