You want a savings account to grow to \( \$ 5000 \) in 10 years. If interest is \( 3.5 \% \) compounded continuously, how much should you invest?

To find out how much you need to invest, you can use the formula for continuous compounding: \( A = Pe^{rt} \), where \( A \) is the amount you want in the future, \( P \) is the principal amount (initial investment), \( r \) is the interest rate, and \( t \) is the time in years. Rearranging the formula to find \( P \) gives you \( P = \frac{A}{e^{rt}} \). Substituting the values, \( P = \frac{5000}{e^{0.035 \times 10}} \). Calculating this gives you approximately \( 1,400.26 \). Investing early can be a game-changer! If you want to reach that $5000 goal, consider automating your contributions. Set up monthly deposits to your savings account; it’s like putting your savings on autopilot! And remember, don’t forget to shop around for accounts offering the best interest rates. Your future self will thank you for getting this right now!