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?

Question

anonymous · Answer

Last one! @jim_thompson5910

jim_thompson5910 · Answer

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)

jim_thompson5910 · Answer

do you remember what to do here?

anonymous · Answer

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

jim_thompson5910 · Answer

sure thing

jim_thompson5910 · Answer

e is approximately 2.71828

jim_thompson5910 · Answer

so 

A = 3000*e^(0.025*5)

is approximately 

A = 3000*2.71828^(0.025*5)

anonymous · Answer

A= 3399

jim_thompson5910 · Answer

very good

anonymous · Answer

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

jim_thompson5910 · Answer

anytime, glad I could help you out