Question

When Angelina was born, her grandparents deposited $3000 into a college savings account

paying 4% interest compounded continuously. What will the balance be after 8 years?

Answer 1

$4105.71

Explanation:

1. Add 100 to 4%. When you do this, you get 104.

2. Move the decimal in 104 two times to the left. This will result in 1.04

3. Now you need to solve 3,000(1.04^8)

4. 1.04^2 = 1.36856905041

5. 1.36856905041 x 3,000 = 4105.70715122

6. You round 4105.70715122 to the nearest tenth because it's money. This will result in 4105.71