Zack opened a savings account 4 years ago. The account earns 14% interest, compounded continuously. If the current balance is 800.00, how much did he deposit initially?

Solution

Solution

Principal : 456.97

Solution steps

Translate the problem into an equation:

800 = P e^{0.14 \cdot 4}

Solve for

P, 800 = P e^{0.14 \cdot 4} : P = 456.97

Principal : 456.97

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