Question

you invest 3200 in an account that pays an interest rate of 7.25% compounded continuously. Calculate your balance after 12 years

Answer 1

@Shalante

Answer 2

Use the continuously compounding interest formula
\[A = Pe^{rt}\]
P = principal (amount invested)
r = interest rate
t = time in years

Answer 3

but what is e?

Answer 4

e is a constant. It's irrational and approximately 2.71828. Use the e^ button on your calculate for more accurate estimations

Answer 5

so that is e?

Answer 6

yes

Answer 7

so you'd put this in your calculator
\[3200e^{(0.0725*12)}\]

Answer 8

so A=3200*2.71^12*.0725

Answer 9

7617.86 is the answer

Answer 10

3200*e^(12*.0725)
Use the "e" button and you get $7638.11
As you can see it makes a big difference. If you round, use more decimal points (at least 5) so you get a closer number

Answer 11

it said it was wrong

Answer 12

which number did you enter?

Answer 13

@CuPc4kE99