Answered

Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Get quick and reliable solutions to your questions from a community of experienced professionals on our platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

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)

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.