Lux Investing

Investment problem of exponential growth?

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= 71000e^0.067t. How much did you initially invest in the account? How do you solve this? Please show work.

Public Comments

1. you initially started with 71000, general formula is amount after t years= initial amount* e raised to the k*t power where t is num of years and k is given as .067. so in 2000, t=0, thus e^0=1 and you're left with only your inital investment after 0 years.