Question

You invest $1,600 in an account that pays an interest rate of 4.75%, compounded continuously. Calculate the balance of your account after 7 years. Round your answer to the nearest hundredth.

Answer 1

For continuous compounding, the formula for future value is
F=Pe^it
=1600*e^(0.0475*7)
=1600(1.394449899)
=$2231.12 (to the nearest cent)