Suppose you invest $2500 at an annual interest rate of 3% compounded continuously. How much will you have in the account after 7 years? Round the solution to the nearest dollar. The steps for this would be great, thanks!

Question

anonymous · Answer

$$A = Pe^{rt}$$

anonymous · Answer

Are you familiar with this formula?

anonymous · Answer

No :/

anonymous · Answer

actually it sounds familiar but I don't know it.

anonymous · Answer

Alright. This is the formula for compounded continuously. Where:
P = 2500
e = 2.718...
r = 0.03
t = 7
Just plug in numbers :)

anonymous · Answer

awesome. Thank you!

anonymous · Answer

np :)

anonymous · Answer

So then, the answer is....20411?

anonymous · Answer

nope I did something wrong

anonymous · Answer

I got 111,582,957

anonymous · Answer

oh! i used .3 instead of .03. my mistake.

anonymous · Answer

$$A = 2500(2.718...)^{0.03(7)}$$$$A = 2500(2.718)^{0.21}$$$$A = 2500(1.23367806)$$$$A = 3084.20$$

anonymous · Answer

Ohhh, you multiply the 2500 last. Alright, thanks a lot.

anonymous · Answer

np :)

anonymous · Answer

Wait how did you get all of those numbers for Pe^rt?