Question

Amelia invested $1,700 in an account paying an interest rate of 1.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Answer 1

Explanation:

2400e(0.016)(5)=P

2400e0.08=P

2215.479...=P

Rounded to the nearest dollar, P≈$2215.

Answer 2

Total amount in account after 11 years is $ 2027.14

Solution:

Given that Amelia invested $1,700 in an account paying an interest rate of 1.6% compounded continuously

To find: Total amount in the account after 11 years

The total amount formula for compounded continuously is given as:

`A = p e^(rt)`

Where "p" is the principal

"r" is the rate of interest

"t" is the number of years

Here in this problem, p = 1700

`r = 1.6 \% = (1.6)/(100) = 0.016`

t = 11 years

Substituting the values in formula we get,

`A = 1700e^(0.016 * 11)\\\\A = 1700e^(0.176)\\\\A = 1700 * 1.1924\\\\A = 2027.14`

Thus total amount in account after 11 years is $ 2027.14