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Ron deposits $2,000 into an account that receives 3.1% interest compounded continuously. How much money is in the account after 9 years?

Sagot :

In general, the continuous compounding interest formula is

[tex]\begin{gathered} P(t)=Pe^{rt} \\ P\rightarrow\text{ initial amount} \\ t\rightarrow\text{ time} \\ r\rightarrow\text{ interest rate} \end{gathered}[/tex]

Therefore, in our case,

[tex]P(t)=2000e^{0.031t}[/tex]

Set t=9 as shown below

[tex]\Rightarrow P(9)=2000e^{0.279}\approx2643.615...[/tex]

The exact answer is 2000e^(0.279)

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