How much money invested at 5% compounded continuously for 3 years will result in $820? (2024)

How much money invested at 5% compounded continuously for 3 years will result in $820?

We know that the amount after 3 years is $820, the interest rate is 5%, and the compounding is continuous. Therefore, investing $701.54 at 5% compounded continuously for 3 years will result in $820.

How much money invested at 5% compounded continuously for three years will result in $820?

Expert-Verified Answer

After three years, the total payment is $820. Assume that the main amount is x dollars. = 708.35 dollar. We can determine from the facts that the principal amount invested was $708.35.

How much would 500 invested at 3 interest compounded continuously be worth after 6 years?

Loved by our community. So $500 invested 6 years ago at 3% would be worth $598.61 today. don't forget to brainly!

How long will it take an investment that is compounded continuously at a rate of 8% to double?

For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money. Note that a compound annual return of 8% is plugged into this equation as 8, and not 0.08, giving a result of nine years (and not 900).

How much should be invested now at an interest rate of 5% per year compounded continuously to have $2000 in three years?

Answer and Explanation:

The future value of the investment is $2,000, the investment period is 3 years, and the interest rate per annum is 5%. Using the values, the present value of the investment can be computed. Thus, the amount to be invested is $1,727.68.

What is the compound interest 5% for 3 years?

When it comes to compound interest, the calculation of interest is made on accrued interest. If you deposit Rs.3000 at 5% interest rate for 3 years, the total interest earned will be Rs.150.

How do you calculate the amount and compound interest on 8000 for 3 years at 5 per annum?

What is the simple interest on 500 for 3 years at 5% per annum?

500/- for 3 years at simple interest at 5% per annum. ∴ The amount is Rs. 575.

How long will it take to double your money if you earn 5% compounded continuously?

Using the rule of 72, you would estimate that an investment with a 5% compound interest rate would double in 14 years (72/5).

How do you calculate compounded continuously?

What Is Continuous Compounding Formula? The continuous compounding formula is nothing but the compound interest formula when the number of terms is infinite. This formula says, when an amount P is invested for the time 't' with the interest rate is r% compounded continuously, then the final amount is, A = P e^rt.

How long does it take $1000 to double if it is invested at 5% compounded continuously?

Thus, it will take 14.21 years for the money to double.

How long will it take money invested at 7% interest compounded continuously to double?

It takes 9.9 years for money to double if invested at 7% continuous interest.

How much would $200 invested at 4% interest compounded continuously be worth after 8 years?

The worth of $200 invested at 4% interest compounded monthly after 8 years would be $275.28.

How do you calculate compound interest for 3 years?

For example, if you have an investment that earns 5% compound interest and you want to know how much money you'll have after 3 years, you would plug the following values into the formula: A = P(1 + r/n)^nt. A = 1000(1 + 0.05/1)^3. A = 1000(1.05)^3.

What is the effective annual interest rate for 5% compounded monthly?

Calculate the effective interest rate using the formula above. For example, consider a loan with a stated interest rate of 5% that is compounded monthly. Plug this information into the formula to get: r = (1 + . 05/12)¹² - 1, or r = 5.12%.

How long will an account invested at 5% compounded yearly be doubled?

If the expected annual return on a CD is 5% and you invest the same amount, it will take you 14.4 years to double your money.

How much is 5% interest on $10000?

Simple Interest Examples

You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500. Then, you'd multiply this value by the number of years on the loan, or $500 × 5 = $2,500.

What is $200 at 3 for 5 years?

$200 = P imes 0.03 imes 5. P = $1333.33 (approximately). Total future amount = $1533.33.

What is the compound interest on 10000 for 3 years?

10,000 for 3 years at the rate of 8% for the 1st year, 10% for the 2nd year, and 12% for the 3rd year. ∴ The compound interest on a sum of Rs. 10,000 for 3 years at the rate of 8% for the 1st year, 10% for the 2nd year, and 12% for the 3rd year will be Rs. 3305.6.

What is the compound interest on 8000 for 3 years?

What is the amount and the compound interest on 16000 for 3 years at 5%?

18,522 and Rs. 2,522. Step by step video, text & image solution for Find the amount and the compound interest on Rs. 16,000 for 3 years at 5% per annum compounded annually.

What is the amount and the compound interest on 1600 for 3 years at 5% per annum compounded annually?

Calculate the compound interest on 1,600 for 3 years at 5% per annum when interest is compounded annuallyand it's answer is rs 252.20​

What is the simple interest of a loan for $1000 with 5% interest after 3 years?

The simple interest of a loan for $1,000 with 5 percent interest after 3 years is $ 150.

What is the simple interest on $10000 at 5 interest for 3 years?

Simple Interest Formula

Thus, if simple interest is charged at 5% on a $10,000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10,000 x 0.05 x 3 = $1,500.

How many years a sum will be 3 times at the simple rate of interest 5% per year?

∴ In 40 year the sum will be thrice of it at the rate of interest 5% per annum.