Question

** POR FAVOR WILL FAN AND MEDAL**
Situation: You invest $900 in an account that pays an interest rate of 5.5%, compounded continuously. Calculate the balance of your account after 6 years.

Answer 1

They gave me a formula but it's not working I think there's a glitch and it won't show me the rest of it I think

Answer 2

The formula for continuous interest problems is
\(FV=PVe^{rt}\)
FV=future value
PV=present value
r=annual rate of interest (in decimal, not percent)
t=time in years
e=constant, 2.71828....

Answer 3

Is the future value 6 years?

Answer 4

Please help me set it up I'm getting confused.

Answer 5

6=(900)(2.71828)^(5.5)(6) ?

Answer 6

You have FV at 6, but you're looking for FV

Answer 7

yes, time t=6 (years)
PV is the current investment
FV is what you expect to get after t=6 years
r=rate of interest=5.5%=0.055 in decimal

Answer 8

So, FV=(900)(2.71828)^(0.055)(6) ?

Answer 9

Note that interest is in decimal form 0.055
and there are parentheses between r and t, i.e. the exponent is for the product r*t.
The way you interpreted the formula will have the time t multiplied (instead of exponentiated).

Answer 10

can you write it out please I keep writing it wrong?

Answer 11

FV=PV*e^(rt)
is what you need to put on your calculator.

Answer 12

I know but you said what I set up is wrong

Answer 13

Read up PEMDAS to help you understand how formulas work:
http://www.purplemath.com/modules/orderops.htm

Answer 14

You may have noticed that there are parentheses around r and t.
Without the parentheses, only r will be exponentiated.

Answer 15

oh okay I see!

Answer 16

I got 1251.87

Answer 17

is that worng

Answer 18

Nope, I got the same thing. Good one

Answer 19

I GOT IT RIGHT Y'ALL THANK THE HEAVENS

Answer 20

Yay!

Answer 21

@FortyTheRapper Thanks for your help :)

Answer 22

Thanks but I give all credit to @mathmale on this one