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How much money invested at 0.5% compounded continuously for 10 years will yield $950

1 Answer

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Answer:

The principal is $903.78.

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=$950 , r=0.5% , n=1 and t=10 years

After plugging the given information we have

950950950PP=P(1+0.0051)1⋅10=P⋅1.00510=P⋅1.05114=9501.05114=903.78

User Cammie
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