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stepladder [879]
3 years ago
12

After 4 years you have 5300 what is the initial deposit if the account pays 2.5% annual interest compounded continuously

Mathematics
1 answer:
bonufazy [111]3 years ago
5 0

Answer:

Initial deposit P = 4,801 (Approx.)

Step-by-step explanation:

Given:

Amount after 4 year = 5,300

Number of year = 4 year

Rate = 2.5% = 0.025

Find:

Initial deposit

Computation:

A = P[1+r]ⁿ

5,300 = P[1+0.025]⁴

5,300 = P[1.025]⁴

5,300 = P[1.1038]

Initial deposit P = 4,801 (Approx.)

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