Question

Determine how much money will be in a savings account if the initial deposit was $750 and the interest rate is 4% compounded continuously for 15 years, 6 months.

Answer 1

Do you know which formula to apply?

Answer 2

\[A = Pe ^{r ^{t}}\]

Answer 3

Great :)
So what is P?

Answer 4

750?

Answer 5

Yep :)
r? t?

Answer 6

r = .04 and for t I just multiplied 15(12) and added 6 to get 186

Answer 7

You're pretty good :)
Why don't you try to plug them into your calculator !

Answer 8

Hold on, I believe go by year make more sense!

Answer 9

6 month = .5 yr
=> t = 15.5

Answer 10

Well that's where I go wrong somehow and I don't know where. I got $12,099.43. I put that in as the answer on my hw and it says i'm wrong.

Answer 11

= 1,394

Answer 12

I have to round to the nearest cent. But even when I refer to the example in the book and plug it into my calculator, I don't get the same answer. Is there a certain mode the calculator has to be in maybe? I understand how to do the problem, but I'm not coming up with the correct answer on the calculator.

Answer 13

1, 394.196
= 1,394.20

Answer 14

Round off to cent = check the 3rd digit after decimal point:
If it's ≥ 5, then increase the "cent" digit up!

Answer 15

Did you see how I round up the above result?

Answer 16

For some reason I'm not even getting the thousandths place correct. I get 12099. Here's what I plugged into my calculator exactly: 750e^(.04)(15.5)

Answer 17

If so, be cautious by plugging step by step:
.04 * 15.5 =
e^ (.62) =
750 * .. =

Answer 18

I got it now . I was trying to do it as one whole step

Answer 19

If you do the whole step, it'll need more parentheses!
Howerver, I'm not guarantee you know where to add them, so just be safe!

Answer 20

Okay, thank you very much. I feel better doing it step by step

Answer 21

I'm glad that you feel better :)