Question

HELP HELP HELP PLEASE?
Can someone explain or tell me how to do this math question??


You invest $4,100 in an account that pays an interest rate of 7.25%, compounded continuously. Calculate the balance of your account after 8 years. Round your answer the nearest hundredth

Answer 1

Use the interest rate formula
\[I = Ptr\]

Answer 2

is that like A=Pe^(rt) @GabeBae

Answer 3

@Hoslos

Answer 4

yes
now you just plug the numbers in that you have

Answer 5

@GabeBae , the PTR you gave is different from \[P ^{tr}\]

Answer 6

crooect that is the one that i meant to put up @Hoslos

Answer 7

correct*

Answer 8

sorry

Answer 9

so i plugged them in and i got 7322.75 but it seem wrong to me /: @Hoslos

Answer 10

Ok. Let me work it out.

Answer 11

okay

Answer 12

I realized that year after year, the values are\[4100\]
\[4100+(4100*0.0725)=4397.25\]
\[4397.25+(0.0725*4397.25)=4716...\]
And so on.
Conclusively, the formula for compound interest is:\[Total=PrincipalAmount*(1+interest)^t=4100*(1+0.0725)^8=7200\] to the nearest hundreth.

Answer 13

oh okay i see now
@Hoslos

Answer 14

Good.

Answer 15

yes thank you @Hoslos