Answer:
Diego's initial deposit is $11,111
Explanation:
Let A be the initial deposit Diego made
The amount he will get after two years with continuously compounded interest rate 8% is given by
V = A [tex]e^{rt}[/tex]
Where r is the annual interest rate and t is the number of years (2)
And the actual amount he receive is 13,000
So A = [tex]\frac{V}{e^{0.08\times2} }[/tex] = 13,000 / 1.17 = $11,111
