Question

how much money invested at 6.5 compounded continuously for 5 years will result in $820? i need this asap

Answer 1

The investment money is $598.505

Explanation:

Given as :

The Amount after 5 years = A = $820

The rate of interest applied = r = 6.5 % compounded continuously

The time period for investment = t = 5 years

Let The investment money = $p

Now, From Compound Interest

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

Or, A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, $820 = p ×
`(1+(\textrm 6.5)/(100))^(\textrm 5)`

Or, $820 = p ×
`(1.065)^(5)`

Or, $820 = p × 1.37008

∴ p =
`(820)/(1.37008)`

i.e p = $598.505

So, The investment money = p = $598.505

Hence, The investment money is $598.505 Answer