Question

A person places $60100 in an investment account earning an annual rate of 5.3%, compounded continuously. Using the formula V = P e r t V=Pe rt , where V is the value of the account in t 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 19 years.

Answer 1

$164516

Explanation:

Solution P = 60100 + = 19 r = 5.3/100

V= Pe

V= 60100 e 5.3x19/100

V= $164516

Answer 2

164,516.33

Explanation:

r = 5.3% = 0.053

p = 60100

t = 19

V = Pe^(rt)

Plug It In:

V = 60100e^0.053(19)

V = 60100e^1.007

V = 164516.3309 ≈ 164516.33