Question

Suppose you invest $400 at an annual interest rate 7.6% compounded continuously. How much will you have in the account after 1.5 years? Round the solution to the nearest dollar

Answer 1

`\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount}\\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$400\\ r=rate\to 7.6\%\to (7.6)/(100)\to &0.076\\ t=years\to &1.5 \end{cases} \\\\\\ A=400e^(0.076\cdot 1.5)\implies A=400e^(0.114)`