Suppose you deposit $3,000 for 6 years at a rate of 7%.
If a bank compounds continuously, then the formula used is A= Pe^rt
where e is a constant and equals approximately 2.7183.
Calculate A with continuous compounding. Round your answer to the nearest cent.

Question

Suppose you deposit $3,000 for 6 years at a rate of 7%.
If a bank compounds continuously, then the formula used is A= Pe^rt
where e is a constant and equals approximately 2.7183.
Calculate A with continuous compounding. Round your answer to the nearest cent.

mathstudent55 · Answer

Plug number into formula aand evaluate:
A = Pe^(rt)
A = (3,000)e^((0.07)96))

anonymous · Answer

how did you get 96 just curious

mathstudent55 · Answer

Sorry, typo. It should read:
A = (3,000)e^((0.07)(6))
It should be (open paren) instead of the 9

anonymous · Answer

ok I see but isnt continuous compounding 365? would it be 365*6 or just 6?