Question

you invest 4,400 in an account that pays an interest rate of 6.5 % compounded continuously ,calculate the balance of your account after 3 years .round your answer to the nearest hundreth

Answer 1

FOR PLATO/EDMENTUM the answer is 5347.37

Explanation:

5347.37

Answer 2

This is a problem that deals with exponential growth and the formula for exponential rate problems is:
`y = a(b)^t`, where a= principal amount, b = rate, and t = time.

Let's substitute the corresponding values into its appropriate places: the starting amount is $4,400, the rate is 0.065 but we need to add an 1 because it's an exponential growth problem so it would be 1.065, and the time is 3 years.

Now solve:
[tex]y = $4,400(1.065)^3[tex]
Answer: $5314.98