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MArishka [77]
3 years ago
11

Find the principle needed to have a balance of $1000 after 10 years invested at 3.25% interest compounded continuously

Mathematics
1 answer:
xeze [42]3 years ago
4 0
You will need to use this formula
Principal = Total / [e^(rate*years)]
(where "e" is the mathematical constant 2.718281828459)
Principal = 1,000 / [e^.0325*10]
Principal = 1,000 /  <span> <span> <span> 1.384030646 </span> </span> </span> <span><span> </span> </span>
Principal = 722.53

Source:
http://www.1728.org/rate2.htm


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