Suppose you invest $5000 at an annual interest rate of 6.3% compounded continuously. How much will you have in the account after 3 years? Round the solution to the nearest dollar.

Question

jim_thompson5910 · Answer

Use the formula

A = Pe^(r*t)

where

A = final amount
P = principle (initial amount invested)
r = interest rate in decimal form
t = time in years

jim_thompson5910 · Answer

e is the constant 2.718... and it's a lot like pi = 3.14...

anonymous · Answer

okayyy thank you c:

jim_thompson5910 · Answer

you're welcome

jim_thompson5910 · Answer

what answer did you get

anonymous · Answer

the formula for these problems is A=p(1+r/n)*nt
in this case it would be A=5000(1+063/1)*1*3 (exponent)
A=5000(1.2)
A=6000

anonymous · Answer

yeah i got $6040

jim_thompson5910 · Answer

A = Pe^(r*t)

A = 5000*e^(0.063*3)

A = 6040.2047624149

A = 6040.20

jim_thompson5910 · Answer

Round that to the nearest dollar to get $6,040

so you are correct

anonymous · Answer

okay thank you so much for ur help c:

jim_thompson5910 · Answer

yw