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How much money invested at 5.2% compounded continuously for 6 years will yield 20,500

1 Answer

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Answer:

The principal is $15123.75

Explanation:

To find amount we use formula:

A=P(1+rn)n⋅t

A = total amount

P = principal or amount of money deposited,

r = annual interest rate

n = number of times compounded per year

t = time in years

In this example we have

A=$20500 , r=5.2% , n=1 and t=6 years

After plugging the given information we have

205002050020500PP=P(1+0.0521)1⋅6=P⋅1.0526=P⋅1.355484=205001.355484=15123.75

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