Question

Suppose you invest $1600 at an annual interest rate of 5.3% compounded continuously. How much will you have in the account after 6 years? Round to the nearest cent.

Answer 1

Your equation looks like this for compounded continuously formula:
A(t) = Pe^(r)(t). In our situation, that looks like this: A(t) = 1600e^(.053)(6). Doing that math gives you A(t) = 1600(1.3744). Doing THAT math gives you an ending balance of $2199.00