Question

PLEASE HELP





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

Answer 1

answer * (1.05)^3 = $820

Answer 2

can we do step by step?
please

Answer 3

Ok. If you have an interest rate of 5% that means that after one year you will have 5% more money than you started with.

Adding 5% is the same as multiplying by 1.05.

If you multiply something by 1.05 three times, it's the same as multiplying by the cube of 1.05 or (1.05)^3

Therefore if (something) times (1.05)^3 = 820, what is that something?

Answer 4

um would we do 820/(1.05)^3?

Answer 5

Yes

Answer 6

ok so 1.157625?

Answer 7

is (1.05)^3

Answer 8

Yeah, divide $820 by that.

Remember to round to the nearest penny at the end.

Answer 9

so 708.35?

Answer 10

Yes

Answer 11

so is that the answer to this question?