Alissa Fong

MA, Stanford University
Teaching in the San Francisco Bay Area

Alissa is currently a teacher in the San Francisco Bay Area and Brightstorm users love her clear, concise explanations of tough concepts

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Compound Interest (Continuously) - Problem 8

Alissa Fong
Alissa Fong

MA, Stanford University
Teaching in the San Francisco Bay Area

Alissa is currently a teacher in the San Francisco Bay Area and Brightstorm users love her clear, concise explanations of tough concepts

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This problem looks at how much you need to invest now in order to get a certain amount of money out of a continuously compounded account after a certain amount of time. The word "continuous" tells you that you're using "e" as your base, so in order to solve for the principle investment, you'll be using the natural log. If you get stuck, try writing the equation in log form instead of exponential form.

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