Question

how much money invested at 5% compounded contentiously for 3 years will result in $820?

Answer 1

continuously**

Answer 2

Any ideas on where to start?

Answer 3

Use F = (1+P)^n where P is the present cost, F is the final cost, and n is the # of years.

Answer 4

okay then what?

Answer 5

Plug in the info into the formula

Answer 6

??

Answer 7

\(\color{#0cbb34}{\text{Originally Posted by}}\) @raffle_snaffle
Use F = (1+P)^n where P is the present cost, F is the final cost, and n is the # of years.
\(\color{#0cbb34}{\text{End of Quote}}\)
Thise

Answer 8

yeah i saw that. but where did it come from?

Answer 9

That is the formula we would use to find out how much money is being invested

Answer 10

oh. i didn't know that.

Answer 11

would that be it?

Answer 12

\[\huge~\rm~\bf~A=P(1+\frac{ r }{ 100 })^n\]
We know:
A=820
n=3
r=5
Now you just have to find P
So plug in the given info into that equation

Answer 13

what. you told me to use that first equation. i am confused. what is this second equation have to do with anything.

Answer 14

We use the compound interest formula to find investment the other user made a mistake as did I, I apologize.

Answer 15

okay.... so what is this second equation?

Answer 16

i don't know how to use that one.

Answer 17

Compound interest formula plug in the info I gave you and you basically solve for P .

Answer 18

i don't know how to solve that complex of an equation.

Answer 19

my calculator broke otherwise i would just use that to solve it.

Answer 20

\(\color{#0cbb34}{\text{Originally Posted by}}\) @pooja195
\[\huge~\rm~\bf~A=P(1+\frac{ r }{ 100 })^n\]
We know:
A=820
n=3
r=5
Now you just have to find P
So plug in the given info into that equation
\(\color{#0cbb34}{\text{End of Quote}}\)
\[\huge~\rm~\bf~820=P(1+\frac{ 5 }{ 100 })^3\]
Solve for p.. give it a try

Answer 21

i can't do that without a calculator. it is way to complicated to do without one.

Answer 22

i don't know how to solve this complex on paper.

Answer 23

why are there so many people on my post that aren't even doing anything. if you can't help on this question plz go help on my other one.

Answer 24

If you aren't gonna try and just troll there isn't really a point in helping you.

Answer 25

You are dealing with continuous compounding.
You need the formula that deals with that.
It uses the constant e.

Answer 26

im seriously not. my calculator broke. and i didn't learn how to solve these types of things on paper. iv always just used a calculator. i am not trying to troll i sware.

Answer 27

dragon 1) you need a CONTINUOUS compounding formula and 2) I am looking for the formula to post here.

Answer 28

\(\Large A = Pe^{rt} \)

Answer 29

what. more formulas. now i am more confused oh my.

Answer 30

how do i solve that formula now then if i need that one?

Answer 31

You would get the same answer with either formula.

Answer 32

You have the end amount, A.
You are looking for P.
e is a famous math constant.
r = 5% = 0.05
t = 3

Answer 33

Here it is:

Answer 34

Continuous compounding yields more interest than periodic compounding.

Answer 35

okay. so then what?

Answer 36

iv never even seen this formula before.

Answer 37

\(\Large A = Pe^{rt} \)

\(\Large 820 = Pe^{0.05 \times 3} \)

\(\Large P = \dfrac{820}{e^{0.15}} \)

Answer 38

5%
3 years
$820
Principal = Total / e^[rate * years]
Principal = 820 / e^.15
(which is what mathstudent just posted)

Answer 39

okay. so that is the answer?

Answer 40

Use a calculator.
A scientific calculator can raise e to an exponent.

Answer 41

my calculator broke. well the batteries died i don't have money for more.

Answer 42

I think you've trolled enough. Good bye.

Answer 43

scientific calculator is so expensive i have never owned one

Answer 44

Use google. It will solve it for you. :3

Answer 45

Here is a free one.

https://www.google.com/#q=scientific+calculator

Answer 46

i am not trolling. these people are helping me lots. it is starting to make sence. you havent helpes at all pooja

Answer 47

https://www.mathpapa.com/algebra-calculator.html

Answer 48

thanks guys. i didn't know there was one online. give me a sec then.

Answer 49

No you have to do the computing. but your calculator is broken?
dragon here is an online calculator :
http://www.1728.org/calc.htm
it WILL raise numbers to a power

Answer 50

705.780540669
this was the answer it showed. this correct?

Answer 51

That's not the answer I got.

Answer 52

Correct.

Answer 53

it is what the calculator online showed.

Answer 54

although i don't think you can invest money with so many numbers after that decimal point.

Answer 55

Sorry, I recalculated.
That answer is correct.

Answer 56

If you do annual compounding, then the answer is $708.35
It makes sense that if you do annual compounding you have to start with a little more principal because continuous compounding yields more interest that periodic compounding.

Answer 57

oh okay thanks. can you guys help with my question in mathematics please?