Final answer:
To find the initial investment, we can use the formula for compound interest. Plugging in the values, the initial investment was approximately $9,031.22.
Step-by-step explanation:
To find the initial investment, we can use the formula for compound interest: A = P e^(rt), where A is the final balance, P is the initial investment, r is the interest rate, and t is the time in years.
In this case, A = $12,669.44, r = 0.07, and t = 5 years. We want to solve for P. Rearranging the formula, we get P = A / e^(rt). Plugging in the values, P = 12,669.44 / e^(0.07 * 5).
Using a calculator, we find that e^(0.07 * 5) ≈ 1.403. So, P ≈ 12,669.44 / 1.403 ≈ $9,031.22.
Therefore, the initial investment was approximately $9,031.22.