Alexander B. answered • 09/05/17

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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/e

^{0.2}or approximately:**P = $4093.65**(the answer)