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?
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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(52894) (Show Source):
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
