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Popular Word Problems >

Tyra invests 5300 in a new savings account which earns 4.4% annual interest, compounded continuously. What will be the value of her investment after 5 years? Round to the nearest cent.

Solution

T yr a in v es t s 5300 in a n e w s a v in g s a cco u n t w hi c h e a r n s 4.4% ann u a l in t eres t, co m p o u n d e d co n t in u o u s l y . Wha t w i ll b e t h e v a l u e o f h er in v es t m e n t a f t er 5 ye a rs ? R o u n d t o t h e n e a res t ce n t .

Solution

Amount : 6604.21

Solution steps

Translate the problem into an equation:

A = 5300 e^{0.044 \cdot 5}

5300 e^{0.044 \cdot 5} = 6604.20667 \dots

Round to the nearest hundredth:

6604.21

Amount : 6604.21

Popular Examples

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