Answer:
$2010.96
Step-by-step explanation:
You want the present value of $3000 if it earns 8% interest compounded continuously for 5 years.
Present value
The compound interest formula tells you the future value is ...
FV = PV(e^(rt))
where PV is the present value, r is the interest rate, and t is the number of years.
Solving for PV, we have ...
PV = FV·e^(-rt)
PV = $3000·e^(-0.08·5) = $3000·e^-0.40 ≈ $2010.96
Rita's initial deposit was $2010.96.
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