Question

You invest $3,000 in an account with an interest rate of 5.5% compounded continuously. How much money would be in the account after 5 years?

Answer 1

3000 * e^nr

Answer 2

In this case, P = 3000, r =0.055 and t = 5

We're going back to the formula

A = Pe^(rt)

because we're compounding continously

Answer 3

Plug these values in to get


A = 3000*e^(0.055*5)

Answer 4

A= 300*e^0.275

Answer 5

good so far

Answer 6

Sorry A=3000*e^0.275

Answer 7

oh good point, I glossed over that missing zero lol

Answer 8

but I know what you mean

Answer 9

so what's next?

Answer 10

A= 9.04083087??

Answer 11

not sure how you're getting that

Answer 12

I did 3000^0.275

Answer 13

ah i see now

Answer 14

it should be 3000*e^0.275

Answer 15

so you need to compute e^0.275 first

Answer 16

the value of 'e' is roughly 2.71828, most likely there will be an 'e' button on your calculator so you won't have to worry about memorizing this

Answer 17

anyways, e^0.275 = 2.71828^0.275 = 1.316530431


So


3000*e^0.275


turns into


3000*1.316530431

Answer 18

Oh! I see =) So A= 3950

Answer 19

exactly

Answer 20

YES! =)

Answer 21

you're on a roll lol