Answer:
The principal amount is approximately 92296$.
Step-by-step explanation:
We are given the following in the question:
Amount = $1,000,000
t = 25 years
r = 10%
The principal amount is compounded annually continuously.
Formula:
[tex]A = P(1+r)^t[/tex]
Putting all the values, we get
[tex]1000000 = P(1+\displaystyle\frac{10}{100})^{25}\\\\1000000=P(\frac{11}{10})^{25}\\\\ P = 1000000\times (\frac{11}{10})^{-25}\\\\P = 92295.9981 \approx 92296\$[/tex]
Thus, the principal amount is approximately 92296$.
