SOLUTION: 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 a

Question 1089548: 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 A=3200e^0.06t��How much did you initially invest in the account?
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the exponential growth equation is F = P * e^(RT)

F is the future value
P is the present value
R is the interest rate per time period
T is the number of time periods

in your equation, F is equal to A and P is equal to 3200 and R is equal to .06

the equation becomes A = 3200 * e^(.06 * T)

therefore, your initial investment in the equipment has to be 3200.

Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!

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 A=3200e^0.06t��How much did you initially invest in the account?

is the exponential growth formula, where P is the Principal, or the PV, or the Initial Amount invested.
<========= Compare to this
You'll see that P, or the Principal, or the PV, or the Initial Investment is:
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