Savannah opened a savings account 9 years ago. The account earns 5% interest, compounded continuously. If the current balance is 600.00, how much did she deposit initially?

Solution

Solution

Principal : 382.58

Solution steps

Translate the problem into an equation:

600 = P e^{0.05 \cdot 9}

Solve for

P, 600 = P e^{0.05 \cdot 9} : P = 382.58

Principal : 382.58

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