Question

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

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

Answer 1

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