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
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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