Question

Ceasar opens a bank account and makes an initial deposit of $800. The banker tells Ceasar that he is going to receive an annual rate of 10% compounded continuously on his investment. Find the bank balance assuming Ceasar leaves the account untouched for 8 years.

Can you please do the problem using the formula A(t)=pe^(rt).

Answer 1

1780.43

Explanation:

Given:

P = 800

r = 10% or 0.1

t = 8

Work:

`A=Pe^(rt)\\\\A=800e^(0.1*8)\\\\A=800e^(0.8)\\\\A=1780.43`