Question

PLEASE HELPP!!

An initial amount of money is placed in an account at an interest rate of 5% per year, compounded continuously. After five years, there is $3287.11 in the
account. Find the initial amount placed in the account. Round your answer to the nearest cent.

Answer 1

9514 1404 393

Answer:

$2560.00

Explanation:

The account balance is given by the formula ...

A = Pe^(rt) . . . . principal P invested at rate r for t years

Filling in your numbers, we have ...

$3287.11 = Pe^(0.05·5)

P = $3287.11e^(-0.25) = $2560.00

The initial amount was $2560.00.