Question

Jason plans to invest $9,000 in an account at Union Bank. The annual rate is 3.78% compounded

countinously. How much does Jason have at the end of 10 years?

Answer 1

$13 042.8

Explanation:

We will simply use the formula;

Amount = p [ 1 + R/100]^t

Where p = principal amount

R = Rate

and T=time given in year

From the question given;

principal(p)= $9000

Rate(r) =3.78

Time(t) = 10

We can now proceed to inert the values into the formula;

Amount = p [ 1 + R/100]^t

=$9000 [1 + 3.78/100]^10

= $9000[1 + 0.0378]^10

=$9000[1.0378]^10

=$9000×1.4492

=$13 042.8

Therefore, at the end of 10 years, Jason will have $13 042.8

Answer 2

$13,134

Explanation:

The questiom says that Jason plans to invest $9,000 in an account at Union Bank. The annual rate is 3.78% compounded

countinously. How much does Jason have at the end of 10 years.

This very question is similar to the one where interest is compounded monthly or annually and they both share similar formula,but only that the one compounded continuously uses an exponential function which is equal to 2.71828.

The formula for finding the answer for the question written above is

Total = Principal x e^(Interest x Years)

Where:

e – the exponential function, which is equal to 2.71828.

=9000 × 2.71828^(0.0378×10)

=9000 × 2.71828^0.378

= 9000 × 1.4593...72

= $13,134.2

Therefore,the amount available to Jason after investing $9000 at an interest rate of 3.78% and for 10 Years is $13,134 and if you maybe want to find the interest alone,all you have to do is to subtract the principal (the amount initially invested) from the money available after getting the total value of the investment