Moneysaver's Bank offers a savings account that earns 5.5% interest per year, compounded continuously. If Isabel deposits \$1700, how much will she have in the account after five years, assuming she makes no withdrawals?

Solución

M o n eys a v e r^{'} s B ank o ff ers a s a v in g s a cco u n t t ha t e a r n s 5.5% in t eres t p er ye a r, co m p o u n d e d co n t in u o u s l y . I f I s ab e l d e p os i t s $1700, h o w m u c h w i ll s h e ha v e in t h e a cco u n t a f t er f i v e ye a rs, a ss u min g s h e mak es n o w i t h d r a w a l s ?

Amount : 2238.1

Pasos de solución

Translate the problem into an equation:

A = 1700 e^{0.055 \cdot 5}

1700 e^{0.055 \cdot 5} = 2238.10214 \dots

Redondear al más cercano hundredth:

2238.1

Amount : 2238.1