Question

O EXPONENTAL AND LOGARITHMIC FUNCTIONS

Finding the initial or final amount in a word problem on...
An initial amount of money is placed in an account at an interest rate of 2% per year, compounded continuously. After two years, there is $1269.79 in the
account. Find the initial amount placed in the account. Round your answer to the nearest cent.

Answer 1

$ 1220.00

Explanation:

1269.79 = A
`e^(.02 * 2)`

1269.79 /A =
`e^(.04)`

ln(1269.79 /A) = .04 ln(e)

ln(1269.79 /A) = .04

1269.79 /A =
`e^(.04)`

1269.79 /A = 1.0408

A = 1269.79 / 1.0408

$ 1220.00