Question

You invest $2,800 in an account that

pays an interest rate of 5.5%,
compounded continuously. Calculate the balance of your account after 12 years

Answer 1

`~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$2800\\ r=rate\to 5.5\%\to (5.5)/(100)\dotfill &0.055\\ t=years\dotfill &12 \end{cases} \\\\\\ A=2800e^(0.055\cdot 12)\implies A=2800e^(0.66)\implies A\approx 5417.42`