Solve the Problem $P$ Dollars in Principal Is Invested in an Account Earning

question 161

Multiple Choice

Solve the problem.
-Suppose that $P$ dollars in principal is invested in an account earning $5.3 \%$ interest compounded continuously. At the end of $3 \mathrm { yr }$ , the amount in the account has earned $\$ 1,378.70$ in interest. Find the original principal. Round to the nearest dollar. (Hint: Use the model $A = P e ^ { r t }$ and substitute $P + 1,378.70$ for $A$ .)

• A) \(\$ 9,379\)
• B) \(\$ 2,555\)
• C) \(\$ 1,176\)
• D) \(\$ 8,000\)

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Definitions:

Cash Over

This term indicates a situation where the actual amount of cash exceeds the expected or recorded amount, often in a cash register or in accounting records.

Income Statement

A financial statement that shows the income, expenses, and profits over a specific period, indicating the financial performance of a business.