A = Ending amount P = Starting principle (deposit) r = rate per year t = time in years business application.

Question

4. Daniel deposits $8,000 into a continuously compounding interest account. After 18 years there is $13,006.40 in the account. What was the interest rate?

 

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

Answer 1

13600.40 = 8000e^18t Solve for t and answer

26000 = pe^(0.023)(15) Calculate p and answer