what was his initial deposit?

label Calculus
account_circle Unassigned
schedule 1 Day
account_balance_wallet \$5

Jul 9th, 2015

For the question, you will be using the formula to find compound interest. Usually, this formula is written as follows: A = P (1 +r/n)^nt; where A is the total amount, P is the principal/initial amount, r is the interest (as a decimal), n is the number of terms compounded, and t is the time (in years). However, because the question states compounded continuously, we would use the other equation: A= Pe^rt, where e just means that it is an exponential function.

Using the equation, we will fill out what we are given (knowns) of the question.

15, 000 = P (1 + 0.08/1)^(1)(2); solve the right side of the equal sign

15, 000 = P(1.1664); we're going to bring the 1.1664 over to the other side. Because it was being multiplied with P, we're going to divide it, once moved over.

15, 000 / 1.1664 = P

12, 860. 08 = P

Therefore, the initial deposit put in the bank two years ago was \$12, 860.08.

Please let me know if you need any clarification. I'm always happy to answer your questions. Thank you and take care!
Jul 9th, 2015

...
Jul 9th, 2015
...
Jul 9th, 2015
Oct 19th, 2017
check_circle