Question

A quantity with an initial value of 200 grows continuously at a rate of

4% per second. What is the value of the quantity after 1.55 minutes, to the nearest hundredth?

Answer 1

8252.88

Explanation:

This question is a little tricky. you have to use the time a little differently.

Continuously Compounding formula:

P(t)=P(0)e^(rt)

P(0) = initial or starting value

e = constant, on calculator but around 2.718

r = rate

t = The time. usually expressed annually. For example continuously compounding for 6 months, the time would be 0.5. This question is different because we have to treat seconds as "years"

Final Form:

200((e)^(0.04 * 93))

Answer: 8252.88