Denise opened a savings account 3 years ago. The account earns 5% interest, compounded continuously. If the current balance is 800.00, how much did she deposit initially?

Solution

Solution

Principal : 688.57

Solution steps

Translate the problem into an equation:

800 = P e^{0.05 \cdot 3}

Solve for

P, 800 = P e^{0.05 \cdot 3} : P = 688.57

Principal : 688.57

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