Question

Suppose you invest $950 at an annual interest rate of 6.5% compounded continuously. How much will you have in your account after 10 years? Round the solution to the nearest dollar.

Answer 1

Hey!


Alright to solve this problem we must first know the formula for Continuously Compounded Interest. The formula is
`A = Pe ^(rt)`.

Okay lets see, now we plug in our numbers into the equation.

Created Equation :

`A= 950`·
`e ^((0.065*10))`

Solution {Solution of the Created Equation} :
1819.76

That would be our final answer.

BUT!!

Your question says to round. So, we will round 1819.76 to get our absoulte final answer.

This means after 10 years you will have about $1820.00.

Hope this helps!


- Lindsey Frazier ♥