Camila invested 9,100 in an account paying an interest rate of 4.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 14 years?

Solution

C ami l a in v es t e d 9, 100 in an a cco u n t p a y in g an in t eres t r a t e o f 4.6% co m p o u n d e d co n t in u o u s l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t d o ll a r, w o u l d b e in t h e a cco u n t a f t er 14 ye a rs ?

Amount : 17327.15

Solution steps

Translate the problem into an equation:

A = 9100 e^{0.046 \cdot 14}

9100 e^{0.046 \cdot 14} = 17327.14615 \dots

Round to the nearest hundredth:

17327.15

Amount : 17327.15