Question

Aaliyah invested $350 in an account paying an interest rate of 4% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 20 years?

Answer 1

To find the final amount in the account after 20 years, use the formula for continuous compound interest: A = P * e^(rt), where A is the final amount, P is the principal amount, r is the interest rate, and t is the time in years. Plug in the given values to calculate the final amount.

Step-by-step explanation:

To find the amount of money Aaliyah will have in her account after 20 years, we can use the formula for continuous compound interest:

A = P * e^(rt)

where A is the final amount, P is the principal amount (initial investment), r is the interest rate, and t is the time in years.

Plugging in the given values, we have:

A = $350 * e^(0.04 * 20) = $746.55

Therefore, Aaliyah would have approximately $747 in her account after 20 years.