You invest $350 in an account with an interest rate of 1.2% compounded continuously. How much money would be in the account after 10 years? Round your answer to the nearest whole number.

Question

katherinesmith · Answer

i know the formula is A = Pe^rt but i don't seem to be getting the right answer.

katherinesmith · Answer

$$A = 350(e)^{.012}(^{10})$$

katherinesmith · Answer

@phi

phi · Answer

the 10 should be multiplying the 0.012
you should get this
$$ A = 350 e^{0.12}$$

what do you get for a number ?

katherinesmith · Answer

394.623898053

phi · Answer

that looks good.

katherinesmith · Answer

rounded to the nearest whole number so 395. okay. thank you.

phi · Answer

If you did compounded yearly, so the yearly interest rate is 0.012
the formula is 
350* 1.012^10 which gives 394.34,   very close to compounding continuously
I did that as a quick check.