Liam opened a savings account 1 year ago. The account earns 11% interest, compounded continuously. If the current balance is 10, 000.00, how much did he deposit initially?

Solution

Solution

Principal : 8958.34

Solution steps

Translate the problem into an equation:

10000 = P e^{0.11 \cdot 1}

Solve for

P, 10000 = P e^{0.11 \cdot 1} : P = 8958.34

Principal : 8958.34

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