Diego deposited a certain sum of money in a bank 4 years ago. The bank had been paying interest at the rate of 5% compounded continuously and he has $11,000 on deposit today. Examine the information above and state each of the following values as they relate to the present value formula for continuous compound interest, P = Ae. (Determine the value of A in dollars.) A = T= t = $ What was Diego's initial deposit (in dollars)? (Round your answer to the nearest cent.)
Diego deposited a certain sum of money in a bank 4 years ago. The bank had been paying interest at the rate of 5% compounded continuously and he has $11,000 on deposit today. Examine the information above and state each of the following values as they relate to the present value formula for continuous compound interest, P = Ae. (Determine the value of A in dollars.) A = T= t = $ What was Diego's initial deposit (in dollars)? (Round your answer to the nearest cent.)
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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