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
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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.)
Transcribed Image Text: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.)
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