Investment Growth Calculation: Initial Investment Estimation

a) How much is your initial investment?

a) The initial investment is $3000.

The given investment model is represented as P = 3000(1 + 0.035/4)^(4t). This formula calculates the investment amount (P) based on the initial principal of $3000, compounded quarterly with an interest rate of 3.5%. In the formula, (1 + 0.035/4) represents the growth factor for each quarter, and (4t) accounts for the number of compounding periods over time 't'. When calculating the initial investment, the value of 't' would be 0, as we're interested in the starting point.

So, the initial investment (P) can be calculated as: P = 3000(1 + 0.035/4)^(4 * 0) P = 3000(1 + 0.00875)^0 P = 3000(1.00875)^0 P = 3000 * 1 P = $3000

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