Question

Terry has an investment account which compounds interest continuously at a rate of 1.4%. He puts $1600 in the account initially. After 3 years, how much money is in the account?

Answer 1

`~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1600\\ r=rate\to 1.4\%\to (1.4)/(100)\dotfill &0.014\\ t=years\dotfill &3 \end{cases} \\\\\\ A=1600e^(0.014\cdot 3) \implies A \approx 1668.63`