Worked solution
Write down the model
This models a population P after t years. The number in front, 500, sits outside the exponential.
Substitute t = 0
The initial population means the value at the very start, when time t is zero.
Simplify the power
Anything to the power 0 equals 1, so e^{0}=1. This is a key index law from earlier work on indices.
State the initial value
So the model starts at 500. The constant A in P=Ae^{kt} always gives the starting amount.