Question

Praise put some money into an account paying 4.5% compounded continuously for 10 year

She now has $3567.91 in the account. How much money did she start the account with?

Answer 1

Answer:
`\$2297.47`

Explanation:

Given

Rate of interest
`r=4.5\%`

time period
`t=10\ year`

Amount
`A=\$3567.91`

Amount in compound interest is given by

`\Rightarrow A=P[1+r\%]^t`

where,
`P=\text{Principal}`

Insert the values

`\Rightarrow 3567.91=P[1+0.045]^(10)\\\\\Rightarrow P=(3567.91)/(1.5529)\\\\\Rightarrow P=\$2297.47`

So, Praise starts with
`\$2297.47`