Question

A person places $85800 in an investment account earning an annual rate of 8.5%,

compounded continuously. Using the formula V = Pert, where V is the value of the

account int years, P is the principal initially invested, e is the base of a natural

logarithm, and r is the rate of interest, determine the amount of money, to the nearest

cent, in the account after 9 years.

Answer 1

$184383.7

Explanation:

We are given that

Principal, P=$85800

Rate of interest, r=8.5%=0.085

Time, t=9 years

We have to find the amount of money after 9 years

`V=Pe^(rt)`

Using the formula

`V=85800e^(0.085* 9)`

`V=184383.7`

Hence, the amount of money after 9 years=$184383.7