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Popular Word Problems >

Ron opened a savings account and deposited 500.00 as principal. The account earns 15% interest, compounded continuously. What is the balance after 8 years?

Solução

R o n o p e n e d a s a v in g s a cco u n t an d d e p os i t e d 500.00 a s p r in c i p a l . T h e a cco u n t e a r n s 15% in t eres t, co m p o u n d e d co n t in u o u s l y . Wha t i s t h e ba l an ce a f t er 8 ye a rs ?

Solução

Amount : 1660.06

Passos da solução

Translate the problem into an equation:

A = 500 e^{0.15 \cdot 8}

500 e^{0.15 \cdot 8} = 1660.05846 \dots

Round to the nearest hundredth:

1660.06

Amount : 1660.06

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