Problema Solution
An account now contains $11,000 and has been accumulating interest at a 7% annual rate, compounded continuously, for 7 years. Find the initial deposit. Thank you for your help.
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An account now contains $11,000 and has been accumulating interest at a 7% annual rate, compounded continuously, for 7 years. Find the initial deposit. Thank you for your help.
SOLUTION:
FV = PV*ert
11000 = PV*e(0.07*7)
PV = 11000/e^0.49
PV = $6738.89
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