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A person places $66800 in an investment account earning an annual rate of 1%, compounded continuously. Using the formula V = Pe^{rt}V=Pe rt , 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 15 years.

User Ayohaych
by
2.9k points

2 Answers

5 votes

Answer:

V=77610.5274≈77610.53

Explanation:

User TimY
by
3.9k points
3 votes

Answer:

$77554.8

Explanation:

Given data

Principal= $66800

Rate= 1%

Time= 15 years

The expression for the amount is


V=Pe^(rt)

substitute


V = 66800e^(0.01*15)


V = 66800e^(0.15)


V = 66800*1.161\\\\V=77554.8

Hence the amount is $77554.8

User Waxren
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3.2k points