Question

To save for a new car, Trafton invested $3,000 in a savings account that earns 5.5% interest, compounded continuously. After four years, he wants to buy a used car for $4,000. How much money will he need to pay in addition to what is in his savings account? (Round your answer to the nearest cent.)

$

Answer 1

He will make $165 every year.

3000 + 165(4) = 3660 (this is his total amount)

He will need 4000 - 3660 = $340

He will need an Additional $340.