Levi invested 8,500 in an account paying an interest rate of 3.4% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 18 years?

Solution

L e v i in v es t e d 8, 500 in an a cco u n t p a y in g an in t eres t r a t e o f 3.4% 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 t e n d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 18 ye a rs ?

Amount : 15674.99

Solution steps

Translate the problem into an equation:

A = 8500 e^{0.034 \cdot 18}

8500 e^{0.034 \cdot 18} = 15674.98553 \dots

Round to the nearest hundredth:

15674.99

Amount : 15674.99