Answer:
The investment money is $598.505
Step-by-step explanation:
Given as :
The Amount after 5 years = A = $820
The rate of interest applied = r = 6.5 % compounded continuously
The time period for investment = t = 5 years
Let The investment money = $p
Now, From Compound Interest
Amount = Principal × [tex](1+\dfrac{\textrm rate}{100})^{\textrm time}[/tex]
Or, A = p × [tex](1+\dfrac{\textrm r}{100})^{\textrm t}[/tex]
Or, $820 = p × [tex](1+\dfrac{\textrm 6.5}{100})^{\textrm 5}[/tex]
Or, $820 = p × [tex](1.065)^{5}[/tex]
Or, $820 = p × 1.37008
∴ p = [tex]\dfrac{820}{1.37008}[/tex]
i.e p = $598.505
So, The investment money = p = $598.505
Hence, The investment money is $598.505 Answer
