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

Question

show the steps, and everything else in 2 sentences.

Answer 1

To calculate the initial investment, we use the formula A = Pe^(rt), where A is the final amount ($820), P is the principal amount, e is Euler's number, r is the interest rate (0.05), and t is the time period in years (3). Plugging in the values, we find that the initial investment needed is approximately $730.43.