
Alexander B. answered 09/05/17
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Advanced Math and Science Tutoring and Test Prep online (SAT, ACT)
Assuming as per the problem definition the target amount A = $ 5,000, the annual rate r=0.1 (decimal equivalent of 10%), investment time period of 2 years, and solving the following exponential equation to find the answer for principal (original) amount P:
$5000 = Pe(.1)x2
P = $5000/e0.2 or approximately: P = $4093.65 (the answer)