Question

Puts $700.00 into an account to use for school expenses. The account earns 4% interest,

compounded continuously. How much will be in the account after 7 years?

Answer 1

• $926.19

Explanation:

Use formula:

• A = Pe^(rt)

Given

• P = $700
• r = 4% = 0.04
• t = 7 years

Find the amount:

• A = 700*e^(0.04*7) = 926.19