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1 February, 15:04

How much money invested at 5% compounded continuously for 3 years will yield $820?

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Answers (2)
  1. 1 February, 18:33
    0
    P=820:e^ (0.05*3)

    P=705.7
  2. 1 February, 18:40
    0
    Percentage of interest at which the money is invested = 5%

    Time for which the money is invested = 3 years

    The final amount after 3 years = $820

    Let us assume the principal amount = x dollars

    Then

    820 = x (1 + 0.5) ^3

    820 = x (1.05) ^3

    x = 820 / (1.05) ^3

    = 708.35 dollars

    From the above deduction, we can conclude that the principal amount invested was $708.35.
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