Answer: he needs an additional $408.3 to buy the car.
Explanation:
The formula for continuously compounded interest is
A = P x e (r x t)
Where
A represents the future value of the investment after t years.
P represents the present value or initial amount invested
r represents the interest rate
t represents the time in years for which the investment was made.
From the information given,
P = $3000
r = 4.5% = 4.5/100 = 0.045
t = 4 years
Therefore,
A = 3000 x e^(0.045 x 4)
A = 3000 x e^(0.18)
A = $3591.7
He wants to buy a used car for $4,000. The additional amount that he needs is
4000 - 3591.7 = $408.3