Solving a word problem using an exponential equation

Solving a word problem using an exponential equation - . If...

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Solving a word problem using an exponential equation: Problem type 3 An initial amount of money is placed in an account at an interest rate of per year, compounded continuously. After five years, there is in the account. Find the initial amount placed in the account. Round your answer to the nearest cent. For many phenomena, an amount varies with the time according to the formula , where is the amount at time , is a nonzero constant, and is the natural logarithm base . If , then increases over time, and the phenomenon follows an exponential growth model
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Unformatted text preview: . If , then decreases over time, and the phenomenon follows an exponential decay model . Money in an account having continuously compounded interest follows an exponential growth model. The initial investment, , is the principal . In the current problem, , years, and . We must find . Substituting into the equation above, we get the following. We solve for as follows. Here is the answer. For additional explanation, see your textbook: Section 4.5: Modeling with Exponential and Logarithmic Functions...
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Solving a word problem using an exponential equation - . If...

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