QuestionLamonte is going to invest in an account paying an interest rate of 4\% compounded continuously. How much would Lamonte need to invest, to the nearest cent, for the value of the account to reach \$12,300 in 8 years?

Studdy Solution
Calculate the initial investment:
$$P = \frac{12300}{e^{0.32}}$$
First, calculate $e^{0.32}$:
$$e^{0.32} \approx 1.377127764$$
Then, calculate $P$:
$$P = \frac{12300}{1.377127764} \approx 8929.68$$
The initial investment Lamonte needs to make is:
$$\boxed{8929.68}$$