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 5 comma 500 e Superscript 0.065 t Baseline . How much did you initially invest in the​ account?

Answer 1

initial investment in the account is 5500.

Step by step Explanation:

exponential growth model provide details of what happens when the same number is multiplied over and over again, it's applications can be found in economics and science generally.

Exponential models gives situations when the rate of change of a particular thing is directly proportional to how much of that thing is.

the given equation becomes A = 5500 * e^(0.065* T)

But an exponential growth equation can be expressed in this form F = P * e^(RT)

Where F = the future value

P = the present or initial value

R = interest rate per time period

T = number of time periods

From the given equation in the question, we can see that

F = A which is the future value

P = 5500 which is the present or initial value.

R = 0.065 which is interest rate per time period

Therefore, your initial investment in the account is 5500.