WILL FAN AND MEDAL! :)

All I need to know is how to set up the equation- Do I change the percentage to 0.035, 0.35 or leave it as 3.5? And do I add 1?

Aidan has $7565 in his checking account. He invests it in an account that earns 3.5% interest compounded continuously. What is the total amount of his investment after 3 years?

Question

WILL FAN AND MEDAL! :)

All I need to know is how to set up the equation- Do I change the percentage to 0.035, 0.35 or leave it as 3.5? And do I add 1?

Aidan has $7565 in his checking account. He invests it in an account that earns 3.5% interest compounded continuously. What is the total amount of his investment after 3 years?

yb1996 · Answer

Each time you use a percent in an equation, you should convert it into a decimal. So 0.035 will be correct.

anonymous · Answer

so it will turn into A=7565(1+0.035)^3?

yb1996 · Answer

The equation you will use will be P=e^(rt)

yb1996 · Answer

Sorry, A = Pe^(rt)

anonymous · Answer

how do you set that up?

yb1996 · Answer

This website has a nice explanation on how to use that equation. Read it and if you have any questions then let me know: http://www.mathwarehouse.com/compound-interest/continuously-compounded-interest.php

anonymous · Answer

so A=7565e^(0.035)(3)

yb1996 · Answer

Yes!

anonymous · Answer

what does 3 represent?

yb1996 · Answer

3 years

anonymous · Answer

i meant e, sorry

anonymous · Answer

so right now i have 7565e^0.105

yb1996 · Answer

e is a constant. It's approximately 2.7. But you should be able to find it on your calculator.

anonymous · Answer

how do i find that using a calculator

yb1996 · Answer

do you have a scientific calculator with you?

anonymous · Answer

yes

anonymous · Answer

wait, I got it

yb1996 · Answer

Alright, I was going to ask you which calculator you had since all calculators have different ways of inputting e, but that makes my life a lot easier...lol

yb1996 · Answer

you should close the question so that it goes off the list