Carson invested 2,700 in an account paying an interest rate of 1.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 5 years?

Lösung

C a rso n in v es t e d 2, 700 in an a cco u n t p a y in g an in t eres t r a t e o f 1.6% 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 ce n t, w o u l d b e in t h e a cco u n t a f t er 5 ye a rs ?

Amount : 2924.88

Schritte zur Lösung

Translate the problem into an equation:

A = 2700 e^{0.016 \cdot 5}

2700 e^{0.016 \cdot 5} = 2924.87508 \dots

Round to the nearest hundredth:

2924.88

Amount : 2924.88