Question

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

p = $2500,r = 3%,compounded continuously

Answer 1

Answer: The balance in the account after 10 years is $3374.65

Explanation:

The exponential equation for growth [ compounded continuously] is

`y=pe^(rt)`

, where P= Present value

r= growth rate ( in decimal)

t= time (years)

By considering the given information , we have

p=$2500 r = % =0.03 and t= 10

Substitute all the values in the above equation , we get

`y=2500e^(0.03(10))`

`y=2500e^(0.3)`

`y=2500(1.3498588)=3374.64701894\approx3374.65` [Round to the nearest cent]

Therefore, the balance in the account after 10 years is $3374.65