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Popular Word Problems >

Arianna invests 5800 in a new savings account which earns 5.0% annual interest, compounded continuously. What will be the value of her investment after 4 years? Round to the nearest cent.

Solution

A r ianna in v es t s 5800 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 5.0% 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 4 ye a rs ? R o u n d t o t h e n e a res t ce n t .

Solution

Amount : 7084.14

Solution steps

Translate the problem into an equation:

A = 5800 e^{0.05 \cdot 4}

5800 e^{0.05 \cdot 4} = 7084.13599 \dots

Round to the nearest hundredth:

7084.14

Amount : 7084.14

Popular Examples

9000 dollars is invested for 3 years with an APR of 2% and daily compounding. what is the balance in the account after 3 years Two less than the product of 19 and a number the sum of a number time 7 and 26 is at least-19 seven times the sum of a number and 18 is at most is 17 the sum of a number times 5 and 28 is at least-15