Question

Mary invests $8,243 in a retirement

account with a fixed annual interest rate of
3% compounded continuously. What will
the account balance be after 18 years?

Answer 1

A = Pe^(rt)

A = 8243e^(0.0318)

A = 8243*e^0.54

A = 8243*1.719

A = $14,161.36

Therefore, the account balance will be $14,161.36 after 18 years.