document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=894988>Question 894988</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An initial amount of money is placed in an account at an interest rate of <BR>\n" );
document.write( "1%<BR>\n" );
document.write( " per year, compounded continuously. After five years, there is <BR>\n" );
document.write( "$2049.98<BR>\n" );
document.write( " in the account. Find the initial amount placed in the account. Round your answer to the nearest cent. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #542480 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=542480\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An initial amount of money is placed in an account at an interest rate of<BR>\n" );
document.write( "1% per year, compounded continuously. After five years, there is $2049.98<BR>\n" );
document.write( "in the account. Find the initial amount placed in the account. Round your answer to the nearest cent.<BR>\n" );
document.write( "***<BR>\n" );
document.write( "Formula for continuous compounding: A=Pe^rt, r=interest rate, t=number of years, A=amount after t-years<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "r=1%=.01<BR>\n" );
document.write( "t=5<BR>\n" );
document.write( "A=$2049.98<BR>\n" );
document.write( "..<BR>\n" );
document.write( "P=A/e^rt=2049.98/e^(.01*5)<BR>\n" );
document.write( "P=2049.98/e^(.05)=1950.00<BR>\n" );
document.write( "initial amount placed in the account=$1950.00 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );