Question

An account now contains $10,118 and has been accumulating interest at 8℅ annual interest, compounded continuously, for 6 years. Find the initial depoit. Round your answer to the nearest cent.

Answer 1

The amount in the account is now 10 118 dollars for 6 years that earned 8% annual interest.
=> 10 118 dollars / 6 years = 1686.33 dollars per year.
=> 1686.33 dollars * .08 = 134.91 dollars is the interests per year
=> 1686.33 dollars - 134.91 dollars = 1551.42 dollars per year
=> 1551.42 dollars / 12 = 129.29 dollars initial monthly deposit.