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In Exercise,find the balance in the account after 10 years.

p = $1900,r = 6%,compounded continuously

User Dan Adams
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1 Answer

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Answer: $ 3462.03

Explanation:

The exponential equation for growth (compounded continuously) is given by :-


A=Pe^(rt)

, where P= Present value

r= growth rate ( in decimal)

t= time

As per given , we have

P=$1900, r = 6% =0.06 and t= 10

Substitute all the values in the above equation , we get


A=1900e^(0.06(10))


A=1900e^(0.6)


A=1900(1.8221188)=3462.02572\approx3462.03 [To the nearest cent]

Hence, the balance in the account after 10 years = $ 3462.03

User Yts
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