Question

Logan invested $180 in an account paying an interest rate of 2.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 12 years?

Answer 1

250

Explanation:

Compounded Continuously:

A=Pe^{rt}

A=Pe

rt

P=180 r=0.026 t=12

Given values

A=180e^{0.026(12)}

A=180e

0.026(12)

Plug in

A=180e^{0.312}

A=180e

0.312

Multiply

A=245.90784475

A=245.90784475

Use calculator (with e button)

A\approx 250

A≈250