Samantha invested 67,000 in an account paying an interest rate of 3.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?

Solution

Samantha invested 67, 000 in an account paying an interest rate of 3.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?

Solution

Amount : 88031.32

Solution steps

Translate the problem into an equation:

A = 67000 e^{0.039 \cdot 7}

67000 e^{0.039 \cdot 7} = 88031.31640 \dots

Round to the nearest hundredth:

88031.32

Amount : 88031.32

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