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?

Question

asked Dec 3, 2022 110k views

1 Answer

Imperezivan · Answer 1 · 2022-12-07T07:19:45+0000

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
$\$2297.47$