Question

Anita opened a savings account and deposited $600.00 as principal. The account earns 6% interest, compounded continuously. What is the balance after 1 year?

Use the formula A=Pert, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.
Round your answer to the nearest cent. ( help please)

Answer 1

$637.10

Explanation:

Given:

P = 600

r = 6% or 0.06

t = 1

Work:

`A=Pe^(rt)\\\\A=600e^(0.06*1)\\\\A=600e^(0.06)\\\\A=637.10`