In 3 years, Farid wants to buy a bicycle that costs 800.00. If he opens a savings account that earns 10% interest compounded continuously, how much will he have to deposit as principal to have enough money in 3 years to buy the bike?

الحلّ

الحلّ

Principal : 592.65

خطوات الحلّ

Translate the problem into an equation:

800 = P e^{0.1 \cdot 3}

800 = P e^{0.1 \cdot 3}, P

حلّ لـ:

P = 592.65

Principal : 592.65

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