Question

An account has $26,000 after 15 years. The account received 2.3 percent interest compounded continuously. How much was deposited initially. Show all work.

Answer 1

The intital amount deposited was  $18485.82.

How to find the compound interest?

If n is the number of times the interested is compounded each year, and 'r' is the rate of compound interest annually, then the final amount after 't' years would be:

$a = p(1 + \dfrac{r}{n})^{nt}$

An account has $26,000 after 15 years. The account received 2.3 percent interest compounded continuously.

A = 26000

R = 0.02.3

$a = p(1 + \dfrac{r}{n})^{nt}$

$26000 = p(1 + \dfrac{2.3}{100})^{15}\\\\26000 = p \times 1.4064\\\\\P= 18485.82$

Therefore, the intital amount deposited was  $18485.82.

Learn more about compound interest here:

brainly.com/question/1329401

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