Question

A person places $3090 in an investment account earning an annual rate of 3%,

compounded continuously. Using the formula V = Pet, 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 11 years.

Answer 1

$4298.10

Explanation:

Using the relation :

V = Pe^rt

P = 3090 ; r = 3% = 0.03 ; t = 11 years

V = 3090 * e^(0.03 * 11)

V = 3090 * e^0.33

V = 3090 * 1.3909681

V = 4298.0915

Amount in the investment after 11 years will be $4298.10