SOLUTION: Invest $P on a CD paying 3.25% interest compounded continuously for a term of 7 years. At end of term you get $679.60. What was the original principal?

Question 1147708: Invest $P on a CD paying 3.25% interest compounded continuously for a term of 7 years. At end of term you get $679.60. What was the original principal?
Answer by ikleyn(52898) (Show Source): You can put this solution on YOUR website!
.


Your equation is


    679.60 = ,


where P is the principal amount (the unknown value under the question), "e" is the base of natural logarithms.


From the equation,


    P =  = 541.32   dollars.    ANSWER

Solved.

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