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Given:
Rate of interest = 8% compounded continuously.
Amount = 100,000
Time = 25 years
To find:
The principal value.
Solution:
Formula for amount after continuous compound interest:
Where, A is amount, P is principal, r is the rate of interest and t is the number of years.
Putting in the above formula, we get
On further simplification, we get
Therefore, the amount 13533.528 is invested.