Question

Determine how much money will be in a savings account if the initial deposit was $750 and the interest rate is 2.463% compounded continuously for 15 years.

Answer 1

Use the formula\[A(t)=Pe^{rt}\]A(t) = total amount of investment as a function of time
P=principal (starting amount)
r=rate (make sure to use the decimal equivalent of the percent)
t=time (in years)

Plug it into the calculator to get the answer.

Answer 2

So the formula would look like this A(t)=750^2.463*15 ?

Answer 3

Make sure you put parentheses around your exponent factors, or you will get a wrong answer. Also, you didn't change the percent to a decimal equivalent (2.463% = .02463).

I think it should look like A(t)=750e^(0.02463*15)

Answer 4

I get around $1020.20 as the answer.

Answer 5

Okay so when I put that into my calculator I just get 11.53961671. What am I doing worng?

Answer 6

Not sure. Hard to diagnose calculator problems over the internet.

Answer 7

The computer didn't accept the $1020.20.

Answer 8

Pretty sure that's correct. Did your homework program give instructions for rounding? Maybe to the nearest dollar?

Answer 9

The nearest cent.

Answer 10

I guess my eyesight is getting bad.... Rechecked the calculator..... $1085.20. Sorry about that.

Answer 11

The answer was right there, I just misread it.

Answer 12

Maybe I should limit myself to problems that don't need a calculator.