Suppose that $867.9 is invested at 6.0% compounded continuously. How much is in the account after 13.4 years? Round your answer to the nearest cent.

Question

Suppose that $867.9 is invested at 6.0% compounded continuously. How much is in the account after 13.4 years? Round your answer to the nearest cent.

Answer 1

A = pe^rt

A = 867.90e^(0.06)(13.4)

A = 867.9e^0.804

A = 867.9(2.23446092)

 

 

Answer 2

Just start with the formula for compounded continuously and plug in the numbers.

 

A = Pe^rt is the formula

 

P=principal=867.90   r=.06 ( make sure to change it into decimal form) and t = 13.4

 

Plugging these in I got 1939.28

 

Hope this helped