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Kimi invests $4,000 at 3% interest compounded continuously. How much money will she have in 4 years? Round to the nearest cent.

User Evoskuil
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1 Answer

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Final answer:

To calculate the final amount, use the formula A = P*e^(rt), where A is the final amount, P is the principal amount, r is the interest rate, and t is the time in years. In this case, Kimi will have approximately $4440.55 after 4 years.

Step-by-step explanation:

To calculate the amount of money Kimi will have in 4 years when investing $4,000 at 3% interest compounded continuously, we can use the formula A = P*e^(rt), where A is the final amount, P is the principal amount, r is the interest rate, and t is the time in years.

Using the given values, we have A = 4000*e^(0.03*4). Evaluating this expression, we find that Kimi will have approximately $4440.55 after 4 years.

User Dan Jordan
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