##### what was his initial deposit?

 Calculus Tutor: None Selected Time limit: 1 Day

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

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Jul 9th, 2015
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Jul 9th, 2015
Dec 6th, 2016
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