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Lisa [10]
3 years ago
13

Lea invests a sum of money in a savings account with an interest rate of 3.4% compounded continuously. After 10 years, the balan

ce is $1900. What is the amount of her initial investment?
Mathematics
1 answer:
Allushta [10]3 years ago
4 0

Answer:

$1,352

Step-by-step explanation:

The computation of the initial amount is shown below:

As we know that

Ending value = Initial investment × e^{rate, time period}

$1,900 = Initial investment × e^{3.4%, 10}

$1,900  = Initial investment × e^0.34

$1,900  = Initial investment × 1.404947591

So, the initial investment is

= $1,900 ÷  1.404947591

= $1,352

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