Jackson invested 52,000 in an account paying an interest rate of 2.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 17 years?

Solution

J a c k so n in v es t e d 52, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 2.1% 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 17 ye a rs ?

Amount : 74309.87

Solution steps

Translate the problem into an equation:

A = 52000 e^{0.021 \cdot 17}

52000 e^{0.021 \cdot 17} = 74309.86523 \dots

Round to the nearest hundredth:

74309.87

Amount : 74309.87