Question

You invest $350 in an account with a interest rate of 1.2% compounded continuously. How much money would be in the account after 10 years?

Answer 1

The formula is

A = Pe^(rt)

because we're compounding continuously

Answer 2

In this case, P = 350, r = 0.012 and t = 10

Answer 3

which means...


A = Pe^(rt)


A = 350e^(0.012*10)


I'll let you take over from here

Answer 4

So would a= 395?

Answer 5

If you're rounding to the nearest dollar, then yes, A = 395


If you're rounding to the nearest cent, then it's A = 394.62

Answer 6

Yep, I am rounding to the nearest dollar =) Thank you!!

Answer 7

alright, just checking, you're welcome