Question

How much money invested at 5% compounded continuously for 3 years will yield $820?
Answer
a. $952.70
b. $818.84
c. $780.01
d. $705.78

Answer 1

$820=Pe^.15
$820=P*1.16
P=820/1.16=$706.90

Answer 2

\[A=Pe ^{rt}\]
\[P=\frac{820}{e ^{0.05\times 3}}=705.78\]