Question

The value of a particular investment follows a pattern of exponential growth. In the year​ 2000, you invested money in a money market account. The value of your investment t years after 2000 is given by the exponential growth model Upper A equals 2 comma 400 e Superscript 0.056 t Baseline . How much did you initially invest in the​ account?

Answer 1

$2,400

Step-by-step explanation:

A = 2,400e^(0.056t) .......................... (1)

Equation (1) can be broken down as follows:

A = The value of the investment at year t.

2,400 = P = Initial investment

0.0056 = r = interest rate

t = period or year

From the above therefore, $2,400 was initially invested in the account.