Question

Moises was given a $1.500 signing bonus at his new job. He is going to invest this money in an account that earns 6% interest, compounded continuously. Find the account balance after ten years.

Answer 1

The account balance after ten years would be approximately $2,476.85.

Step-by-step explanation:

To find the account balance after ten years, we can use the formula for compound interest:

A = P × e^(rt).

Where:

• A is the final amount in the account
• P is the principal (initial amount)
• e is the base of the natural logarithm (approximately 2.71828)
• r is the interest rate (in decimal form)
• t is the time period in years

In this case, Moises invested $1,500 with an interest rate of 6% (0.06) and time period of 10 years.

Plugging these values into the formula:

A = 1500 × e^(0.06 × 10)

Using a calculator, the account balance after ten years is approximately $2,476.85.