After 10 years, you have \$8099.15 in an account that compounded continuously at a rate of 3% annual interest rate. How much money did you have in the account when you opened it?

Solution

After 10 years, you have $8099.15 in an account that compounded continuously at a rate of 3% annual interest rate. How much money did you have in the account when you opened it?

Solution

Principal : 6000

Solution steps

Translate the problem into an equation:

8099.15 = P e^{0.03 \cdot 10}

Solve for

P, 8099.15 = P e^{0.03 \cdot 10} : P = 6000

Principal : 6000

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