Question

A person places $3230 in an investment account earning an annual rate of 5.8%, compounded continuously. Using the formula V = P * e ^ (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 16 years .

Answer 1

8170.11

Explanation:

3230e^0.058(16)

Answer 2

$8170.10

Explanation:

Given data

P=$3230

R= 5.8%

T= 16 years

The given expression for the account is

V = P*e^(rt)

substotute

V = 3230*e^0.058*16

V= 3230 e^ 0.928

V=3230*2.5294452249

V=$8170.10

Hence the balance is $8170.10