Question

Jamie placed $2800 in a savings account which earns 4.3% interest, compounded continuously. How much will she have in the account after 9 years? Round your answer to the nearest dollar. Do NOT round until you have calculated the final answer.

Answer 1

4123

Explanation:

A=Pert,

where A is the balance of the account, P is the principal, r is the annual interest rate (as a decimal), and t is the time (in years). We are given that P=2800, r=0.043, and t=9. Substituting the values into the formula and using a calculator to evaluate, we find

A=Pert=2800e(0.043)(9)≈4123.16