Question

Quinn invested $8,500 in a savings account. If the interest rate is 2.98%, how much will be in the account in 12 years by compounding continuously? Round to the nearest cent.

Answer 1

$12,154.10.

Explanation:

Identify the values of each variable in the formula. Remember to express the percent as a decimal.

APrt=?=$8,500=0.0298=12 years

For compounding continuously, use the formula A=Pert.

Substitute the values into the formula and compute the amount to find

AA=8,500e0.0298⋅12=$12,154.10.