Ingrid deposits 10,000 in an IRA. What will be the value of her investment in 6 years if the investment is earning 3.2% per year and is compounded continuously? Round to the nearest cent.

Solution

Ingrid deposits 10, 000 in an IRA. What will be the value of her investment in 6 years if the investment is earning 3.2% per year and is compounded continuously? Round to the nearest cent.

Solution

Amount : 12116.71

Solution steps

Translate the problem into an equation:

A = 10000 e^{0.032 \cdot 6}

10000 e^{0.032 \cdot 6} = 12116.70516 \dots

Round to the nearest hundredth:

12116.71

Amount : 12116.71

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