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AlladinOne [14]
3 years ago
13

Terry has an investment account which compounds interest continuously at an annual interest rate of 1. 4%. After 3 years, he has

$1700 in the account. How much money did he initially place in the account? Round your answer to the nearest dollar. Do NOT round until you've calculated the final answer
Mathematics
1 answer:
Serggg [28]3 years ago
8 0

Answer:

  $1,630.08

Step-by-step explanation:

The value of an amount earning interest continuously compounded is given by the formula ...

  A = Pe^(rt)

The value of P can be found by dividing by its coefficient:

  P = A/(e^(rt)) = Ae^(-rt)

  P = $1700·e^(-0.014·3) ≈ 1630.0786

Terry placed $1,630.08 in the account.

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