How much money invested at 5% compounded continuously for 3 years will yield $820?

Percentage of interest at which the money is invested = 5%
Time for which the money is invested = 3 years
The final amount after 3 years = $820
Let us assume the principal amount = x dollars
Then
820 = x (1 + 0.5)^3
820 = x(1.05)^3
x = 820/(1.05)^3
= 708.35 dollars
From the above deduction, we can conclude that the principal amount invested was $708.35.

Answer Link

mahak08 mahak08 · Answer 2 · 2022-06-06T14:24:15+02:00

The money is invested for a period of three years.

The interest rate at which the funds are invested is 5%.

After three years, the total payment is $820.

Assume that the main amount is x dollars.

Then,

820 = x (1 + 0.5)^3

820 = x(1.05)^3

x = 820/(1.05)^3

= 708.35 dollar.

We can determine from the facts that the principal amount invested was $708.35.

What is continuously compounded?

Interest can compound indefinitely, as the term "continuously compounded" implies.

Continuous compounding means that a balance receives interest at all times since it can happen an infinite number of times.

For more information about continuously compounded refer to the link:

https://brainly.com/question/24246899

#SPJ5