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Diego deposited a certain sum of money in a bank 4 years ago. If the bank had been paying interest at the rate of 6% compounded continuously and he has $13,000 on deposit today, what was his initial deposit?

Respuesta :

pedrocarratore

Answer:

$10,226.16

Explanation:

The equation that describes the future value (F) of an initial value (P), compounded continuously at a rate 'r' for a period of 'n' years is:

[tex]F=P*e^{rn}[/tex]

If the value after 4 years at a rate of 6% is $13,000, the initial deposit is:

[tex]13,000=P*e^{0.06*4}\\P=\$10,226.16[/tex]

His initial deposit was $10,226.16.