Abigail invested 29,000 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 8 years?

Solution

A bi g ai l in v es t e d 29, 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 8 ye a rs ?

Amount : 34305.16

Solution steps

Translate the problem into an equation:

A = 29000 e^{0.021 \cdot 8}

29000 e^{0.021 \cdot 8} = 34305.16170 \dots

Round to the nearest hundredth:

34305.16

Amount : 34305.16