Chapter 7 - Exponential Functions - 7.5 Compound Interest and Present Value - Exercises - Page 355: 6

$$ \$26629.59 $$

Given $$ P(7) =\$ 50,000,\ \ \ \ \ r=0.09,\ \ \ \ t=5 $$ We use the compound interest formula: \begin{align*} P(t)&=P_0 e^{r t}\\ P(7)&=P_{0} e^{0.09(7)}\\ 50000&=P_{0} e^{0.09(7)}\\ P_{0}&= 50000 e^{-0.63}\\ &\approx \$26629.59 \end{align*}