Question

If an investment account starts with $3900, and grows with 2.1% interest, compounded continuously. How much is the account worth after 10 years? Round your answer to the nearest dollar. Do NOT round until you have calculated the final answer.

Answer 1

If they are asking amount it is $4800.893013; $4800 (nearest dollar)

If they are asking the amount for interest is $900.8930129; $900 (nearest dollar)

Explanation:

Compound interest Formula:

Amount = principle( 1+ rate/100)^n

Information from the question.

-So how you put it is the principle is $3900; the rate is 2.1%; the n is 10.

How to apply it?

- Just substitute in the values;

Amount=3900(1+2.1/100)^10

=4800.893013

~4800 ( nearest dollar)

》That is for amount.

Interest=4800.893013-3900

=900.893013

~900 ( nearest dollar)

》That is for interest.

Hope it helps!!!!:))

Answer 2

Explanation:

A=Pert=3900e(0.021)(10)≈4811.34

The account is worth $4811 after 10 years.