Chapter 7 - Exponential Functions - 7.5 Compound Interest and Present Value - Exercises - Page 355: 5

$$\$12752.56 $$

Given $$ P(5) =\$ 20,000,\ \ \ \ \ r=0.09,\ \ \ \ t=5 $$ We use the compound interest formula: \begin{align*} P(t)&=P_0 e^{r t}\\ 20,000&=P_0 e^{0.09(5)}\\ P_0&= 20,000 e^{-0.45}\\ &=\$12752.56 \end{align*}