Question

When you are born yopr favorite uncle invests $3000 for your colleg education. The money goes into a long-term fund which draws 2.4% interest compounded continuously. How much will be in the account 21 years?

Answer 1

The amount in the account after 21 years is approximately $4,769.17.

Step-by-step explanation:

To calculate the amount of money that will be in the account after 21 years, we can use the formula for continuously compounded interest:

A = P * e^(rt)

Where:

A is the final amount

P is the principal amount (initial investment)

e is the base of the natural logarithm (approximately 2.71828)

r is the annual interest rate (2.4% or 0.024 as a decimal)

t is the number of years

Plugging in the values:

A = 3000 * e^(0.024 * 21)

Using a calculator, the final amount in the account after 21 years is approximately $4,769.17.