Question

An initial amount of money is placed in an account at an interest rate of 3% per year, compounded continuously. After six years, there is $1819.77 in the account. Find the initial amount placed in the account. Round your answer to the nearest cent.

Answer 1

Hi

Let's call X the amount in the beginning.

we have X*1.03^6 = 1819.77

X = 1819.77 / 1.03^6

X ≈ 1524.03