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A day full of math games & activities. Find one near you.
A day full of math games & activities. Find one near you.
A day full of math games & activities. Find one near you.
How much money invested at 5% compounded continuously for 3 years will yield $820?
Solution:
Given, the percentage at which the money is invested, r = 5%
Number of years, n = 3 years
Final amount after 3 years, A = $820
We have to find the amount of money invested i.e.principal amount.
Given that, the money is compounded continuously.
So, the compound interest is A = P(1 + r/100)n
820 = P(1 + 5/100)3
820 = P(1 + 1/20)3
820 = P(21/20)3
820 = P(1.05)3
P = 820/(1.05)3
P = $708.35
Therefore, the principal amount is $708.35
How much money invested at 5% compounded continuously for 3 years will yield $820?
Summary:
The money invested at 5% compounded continuously for 3 years will yield $820 is $708.35
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