Answer:
$3649.11
Explanation:
The below formula for compound interest will be used to solve the given problem;
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where A = the final amount = $5000
P = the initial amount
r = annual interest rate( in decimal form) = 10.5% = 10.5/100 = 0.105
n = number of times compounded per year = 365
t = time in years = 3
Let's go ahead and substitute the given values into the formula and solve for P as shown below;
[tex]\begin{gathered} 5000=P(1+\frac{0.105}{365})^{365\times3} \\ 5000=P(1.370) \\ P=\frac{5000}{1.37} \\ P=3649.11 \end{gathered}[/tex]