Question

Suppose you invest $500 at an annual interest rate

of 3.9% compounded continuously. how much will
you have in the account after 4 years?

Answer 1

$584.41

Explanation:

From this information, we can write the following equation:

where t is the number of years.

To find out the amount after 4 years, we can simply plug in 4 for t:

≈ $584.41

Answer 2

$584.41

Explanation:

From this information, we can write the following equation:

`P = 500(e)^{0.039t` where t is the number of years.

To find out the amount after 4 years, we can simply plug in 4 for t:

`P = 500(e)^{0.039(4))\\`

≈ $584.41