Question

A person places $277 in an investment account earning an annual rate of 6.7%,

compounded continuously. Using the formula V = Pem, where V is the value of the
account in t 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 10 years.

Answer 1

9514 1404 393

Answer:

$541.32

Explanation:

Putting the given values into the given formula, you have ...

V = P·e^(rt)

V = $277e^(0.067·10) ≈ $541.32