Question

2)

A person places $81200 in an investment account earning an annual rate of

3. 6%, compounded continuously. Using the formula V Pert, where Vis

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 13 years.

Answer:

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Answer 1

A = $129,659.95

Explanation:

the equation used for compound is A = Pe^rt, where p= principle, r=rate(interest) e=2.71828, and t=time. first convert the rate into a decimal, then plug in the numbers into the equation.

A = 81,200.00(2.71828)^(0.036)(13)