Initial Investment of 500 dollars! Invest 100 dollars in a bank, assuming the interest is compounded continuously. The initial value is given by:
S(0) = 500
The amount after C years is given by:
S(C) = 500 * e^(0.05C), with S(0) = 500
The amount after 100 years is given by:
S(100) = 500 * e^(-0.05*100), with S(0) = 500
The amount after 100 years is given by:
S(100) = 500 + 500 * e^(-0.05*100), with S(0) = 100