Jonathan invested 930 in an account paying an interest rate of 3.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Solução

J o na t han in v es t e d 930 in an a cco u n t p a y in g an in t eres t r a t e o f 3.1% co m p o u n d e d co n t in u o u s l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t t e n d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 11 ye a rs ?

Amount : 1307.91

Passos da solução

Translate the problem into an equation:

A = 930 e^{0.031 \cdot 11}

930 e^{0.031 \cdot 11} = 1307.90851 \dots

Round to the nearest hundredth:

1307.91

Amount : 1307.91