Question

-

Harper invested $3,200 in an account paying an interest rate of 7% compounded
continuously. Assuming no deposits or withdrawals are made, how much money, to
the nearest ten dollars, would be in the account after 6 years?

Answer 1

Harper will have about $4870 in 6 years.

Explanation:

Answer 2

Harper will have approximately 4870 dollars in 6 years.

Explanation:

Since this investment is compounded continuosly it's growth is given by the following equation:

M = C*e^(r*t)

Where M is the final value, C is the amount invested, r is the interest rate and t is the time elapsed. Applying the data from the question we have:

M = 3200*e^(0.07*6)

M = 3200*e^(0.42)

M = 4870.28

Harper will have approximately 4870 dollars in 6 years.