Eli invested 9,400 in an account paying an interest rate of 2.3% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 19 years?

Solution

El i in v es t e d 9, 400 in an a cco u n t p a y in g an in t eres t r a t e o f 2.3% 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 h u n d re d 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 19 ye a rs ?

Amount : 14551.73

Solution steps

Translate the problem into an equation:

A = 9400 e^{0.023 \cdot 19}

9400 e^{0.023 \cdot 19} = 14551.72712 \dots

Round to the nearest hundredth:

14551.73

Amount : 14551.73