Question

A person places $4630 in an investment account earning an annual rate of 5.7%,

compounded continuously. Using the formula V = Pert, where Vis 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 9 years.

Answer 1

75.935

Explanation:

If V = Pe^rt and we are given P (the principle investment) =4630 ,

a rate of 5.7 % which as a decimal = 0.057 (% divided by 100 = decimal)

we can substitute this information in and get V=4630 e^(.057t).

then it says what will it be in 9 years? so we put 9 in for "t" and get

v = 4630 e^(0.057 * 9) simplify using a calculator and we will get our answer.