Question

Peter put $8,000 into a savings account that pays 6% interest, compounded continuously. After five years, Peter will have

a. 8,001.35 in the account.
b. 10,798.53
c. 21,744.00
d. 160,634.32 Hint: Use the formula A = Pe^rt, where A is the amount after t years, P is the amount invested, r is the rate of interest, t is the time period, and e = 2.718. Use a calculator to compute your answer.

Answer 1

A= $8000 (2.718)∧.06x5 (.06 x 5 = .3)

Order of operations says to do 2.718∧.3 first and then multiply by 8000

I get 10,798.53 answer b