Question

Jocelyn invested $3,700 in an account paying an interest rate of 1.5% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 6 years?

Answer 1

4048

Explanation:

Answer 2

$4048

Explanation:

See attached for reference

Recall the formula for interest compounded continuously is given by

A = Pe^(rt)

Where,

A = final amount ( we are asked to find this)

P = principal amount = $3700

e = eulers number ≈2.71828

r = interest rate = 1.5% = 0.015

t = time in years = 6 years

substituting the given values into the equation

A = Pe^(rt)

A = 3700e^(0.015 x 6)

A = $4048.44

A = $4048 (nearest dollar)