Question

You invest $3,000 in an account that has an annual interest rate of 2.5%, compounded continuously. How much money will be in the account after 5 years?

Answer 1

Last one! @jim_thompson5910

Answer 2

Now we return to the formula

A = Pe^(rt)

because we're compounding continuously again.


In this case, P = 3000, r = 0.025 and t = 5, so this means...


A = 3000*e^(0.025*5)

Answer 3

do you remember what to do here?

Answer 4

Could you please remind me what the value of e is?

Answer 5

sure thing

Answer 6

e is approximately 2.71828

Answer 7

so

A = 3000*e^(0.025*5)

is approximately

A = 3000*2.71828^(0.025*5)

Answer 8

A= 3399

Answer 9

very good

Answer 10

Fantastic! Thank you so so much for all your help again! =)

Answer 11

anytime, glad I could help you out