Question

5. Suppose you invest $500 at an annual interest rate of 8.2% compounded continuously. How much will
you have in the account after 15 years?

Answer 1

\[\large 500e^{.082\times 15}\] and a calculator

Answer 2

what does a the e mean

Answer 3

\(e\) is an irrational number, it can be written as
\[e=\lim_{n\to \infty}\left(1+\frac{1}{n}\right)^n\] it is used for continuous compounding,
the formula for continuous compounding at a rate of \(r\) for \(t\) years is
\[Pe^{rt}\] where of course \(r\) is written as a decimal, not a percent
there is a button for \(e^x\) on your calculator

Answer 4

or you can use this
http://www.wolframalpha.com/input/?i=500e^%28.082*15%29

Answer 5

oh thank you i was using a graphing calculator on my phone and couldnt figure out what you were talking about thank you again! @satellite73

Answer 6

yw