Question

Claudia invests $4000 in an account that compounds continuously at a rate of 3.5%. How much money will he have in her account after 10

years?

Answer 1

$5,400

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3.5%/100 = 0.035 per year,

then, solving our equation

I = 4000 × 0.035 × 10 = 1400

I = $ 1,400.00

The simple interest accumulated

on a principal of $ 4,000.00

at a rate of 3.5% per year

for 10 years is $ 1,400.00.