Piper invested 4,700 in an account paying an interest rate of 4.8% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 19 years?

Solution

P i p er in v es t e d 4, 700 in an a cco u n t p a y in g an in t eres t r a t e o f 4.8% 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 ce n t, 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 : 11699.69

Solution steps

Translate the problem into an equation:

A = 4700 e^{0.048 \cdot 19}

4700 e^{0.048 \cdot 19} = 11699.69190 \dots

Round to the nearest hundredth:

11699.69

Amount : 11699.69