Question

A person places $13000 in an investment account earning an annual rate of 7.4%,

compounded continuously. Using the formula V = Pet, where Vis the value of the
account int 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 19 years.

Answer 1

Answer: r=7.4%=0.074

Move decimal over two places

P=13000

Given as the principal

t=19

Given as the time

V=Pe^{rt}

V=13000e^{0.074( 19)}

Plug in

V=13000e^{1.406}

Multiply

V=53034.856≈53034.86

Use calculator and round to nearest cent