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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

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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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