Taylor invested 11,000 in an account paying an interest rate of 3.5% 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

taylor

in v es t e d 11, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 3.5% 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 : 17955.48

Solution steps

Translate the problem into an equation:

A = 11000 e^{0.035 \cdot 14}

11000 e^{0.035 \cdot 14} = 17955.47841 \dots

Round to the nearest hundredth:

17955.48

Amount : 17955.48