Question

Mrs. Moline invested $3,200 in a savings account hat eirns 4% interest compounded continuously. Find the total amount of mon she will have in 5 years. Round to the nearest cent.

Answer 1

To find the total amount Mrs. Moline will have in 5 years, use the formula for compound interest: A = P*e^(rt), where A is the total amount, P is the principal amount, r is the interest rate, t is the time in years, and e is Euler's number. Plugging in the values, we get the total amount to be approximately $3,608.48.

Step-by-step explanation:

To find the total amount Mrs. Moline will have in 5 years, we can use the formula for compound interest: A = P*e^(rt), where A is the total amount, P is the principal amount ($3,200), r is the interest rate (4% or 0.04), t is the time in years (5), and e is Euler's number (approximately 2.71828). Plugging in the values, we get A = $3,200 * e^(0.04*5). Using a calculator, we can calculate A to be approximately $3,608.48.