The value of a particular investment follows a pattern of exponential growth. You invested money in a money market account. The value of your investment t years after your initial investment is given by the exponential growth model
A=2600e^0.08t
How much was initially invested in the account?
Thanks for your help!
$2600 initial at 8% compounded continuously
Can you walk me through how to do this, please? Thanks SO much! :)
$55 at 13%for 4years
To find the initial investment, we need to isolate the variable "A" in the given exponential growth model.
The exponential growth model is: A = 2600e^(0.08t)
In this equation, A represents the value of the investment after t years. However, we want to find the initial investment, which is the value of A when t is 0.
So, we substitute t = 0 into the equation:
A = 2600e^(0.08*0) = 2600e^0 = 2600 * 1 = 2600
Therefore, the initial investment in the account was $2600.