Question

suppose you invest 400 at an annual interest rate of 7.6% compounded continuously. How much will you have in the account after 1.5 years? Round the solution to the nearest dollar.

Answer 1

$ 448

Explanation:

Here, the principal amount, P = $ 400

Rate of interest, r = 7.6 % = 0.076

Time, t = 1.5 years,

Thus, the amount that is compounded continuously for 1.5 years is,

`A= Pe^(rt)`

`=400 e^(0.076* 1.5)`

`=400e^(11.4)=400*1.12075212488=448.300849954\approx 448`

Hence, we will have $ 448 after 1.5 years.

Answer 2

A=pe^rt
A=400×e^(0.076×1.5)
A=448.30