Juan invested 3,100 in an account paying an interest rate of 3.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 19 years?

Solution

J u an in v es t e d 3, 100 in an a cco u n t p a y in g an in t eres t r a t e o f 3.6% 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 19 ye a rs ?

Amount : 6143.55

Solution steps

Translate the problem into an equation:

A = 3100 e^{0.036 \cdot 19}

3100 e^{0.036 \cdot 19} = 6143.54607 \dots

Round to the nearest hundredth:

6143.55

Amount : 6143.55