Question

Isaac invested $1,800 in an account paying an interest rate of 4.7%

compounded continuously. Assuming no deposits or withdrawals are
made, how much money, to the nearest hundred dollars, would be in
the account after 15 years?

Answer 1

3600

Explanation:

\text{Compounded Continuously:}

Compounded Continuously:

A=Pe^{rt}

A=Pe

rt

P=1800\hspace{35px}r=0.047\hspace{35px}t=15

P=1800r=0.047t=15

Given values

A=1800e^{0.047(15)}

A=1800e

0.047(15)

Plug in

A=1800e^{0.705}

A=1800e

0.705

Multiply

A=3642.92403286

A=3642.92403286

Use calculator (with e button)

A\approx 3600

A≈3600

Round to nearest hundred dollars

Answer 2

$3584.86 or 3600 if rounded to the nearest 100 dollars

Explanation:

1800(1.047)^15= 3584.86

you can plug this into a calculator