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Garrett puts $600.00 into an account to use for school expenses. The account earns 3% interest, compounded continuously. How much will be in the account after 6 years?
Use the formula A=Pe^rt, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.
Round your answer to the nearest cent.

Answer 1

Answer: Garrett puts $600.00 into an account to use for school expenses. The account earns 3% interest, compounded continuously. We can use the formula A=Pe^rt, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.

Substituting the given values, we get:

A = 600e^(0.03*6) ≈ $710.68

Therefore, after 6 years, the balance in Garrett’s account will be approximately $710.68.

Please note that this answer has been rounded to the nearest cent.