Answer: the amount of the initial investment is $5004.63
Step-by-step explanation:
The formula for continuously compounded interest is
A = P x e (r x t)
Where
A represents the future value of the investment after t years.
P represents the present value or initial amount invested
r represents the interest rate
t represents the time in years for which the investment was made.
From the information given,
A = $7156.62
r = 3.26% = 3.26/100 = 0.0326
t = 11 years
Therefore
7156.62 = P x e(0.0326 x 11)
7156.62 = P x e(0.3586)
7156.62 = 1.43P
P = 7156.62/ 1.43
P = $5004.63
