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

First, convert R as a percent to r as a decimal

r = R/100

r = 4.7/100

r = 0.047 rate per year,

Then solve for A,

`A = P\cdot e^(rt)\\\\A= 1800 \cdot (2.71828)^((.047)(15)), \ where \ e = 2.71828\\A = 3642.92`

The amount he receives after 15years $3,642.92