Question
Asked Nov 5, 2019
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John invests a sum of money in a retirement account with a fixed annual interest rate of 2.63% compounded
continuously. After 15 years, the balance reaches $1,912.41. What was the amount of the initial investment?
2.
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John invests a sum of money in a retirement account with a fixed annual interest rate of 2.63% compounded continuously. After 15 years, the balance reaches $1,912.41. What was the amount of the initial investment? 2.

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Expert Answer

Step 1

It is given that,

Annual interest rate is 2.63% compounded continuously.

Number of years is 15.

Accumulated value is $1,912.41.

Step 2

The formula to calculate the present value is given below:

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Step 3

Substitute $1,912.41. for accumulated value, 2.6...

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$1,912.41 Present value e26345) $1,912.41 1.483642184 =$1,288.99

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