- #1
d.smith292
- 29
- 0
Homework Statement
Here is the problem that made me confused at first, now I'm just annoyed. I know I got the right answer for this problem as seen below, but I'm annoyed by the fact that no one has explained what the heck "e" is. Will someone please explain to me what exactly "e" is, so I can get past this issue I have. Even though I can figure out the answer, I can't stop thinking about it until I figure out what it is and where it came from. Thank you, who ever helps me with this problem.
After 15 years, there is $10,000 in an account that was compounded continuously at 6%. How much was in the account originally?
Homework Equations
A = Pe^rt
The Attempt at a Solution
I'm searching for P, so I set my equation up like this:
10000 = Pe^.06*15
Then I get:
10000 = Pe^.9
Which leads to:
10000 = P(2.459603111) "Sorry I like to be as precise as possible until the end"
Leaving:
P ≈ 4065.70