Moneysaver's Bank offers a savings account that earns 9% interest compounded continuously. If Kevin deposits 2300 how much will he have in the account after six years, assuming he makes no withdrawals?

Solution

M o n eys a v e r^{'} s B ank o ff ers a s a v in g s a cco u n t t ha t e a r n s 9% in t eres t co m p o u n d e d co n t in u o u s l y . I f Ke v in d e p os i t s 2300 h o w m u c h w i ll h e ha v e in t h e a cco u n t a f t er s i x ye a rs, a ss u min g h e mak es n o w i t h d r a w a l s ?

Amount : 3946.82

Solution steps

Translate the problem into an equation:

A = 2300 e^{0.09 \cdot 6}

2300 e^{0.09 \cdot 6} = 3946.81578 \dots

Round to the nearest hundredth:

3946.82

Amount : 3946.82