Susan placed 9,900 in a savings account that compounds interest continuously at a rate of 1.9 %.How much will she have in the account after 6 years?Round your answer to the nearest dollar.Do NOT round until you have calculated the final answer.

Solution

S u s an pl a ce d 9, 900 in a s a v in g s a cco u n t t ha t co m p o u n d s in t eres t co n t in u o u s l y a t a r a t e o f 1.9 %. Ho w m u c h w i ll s h e ha v e in t h e a cco u n t a f t er 6 ye a rs ? R o u n d yo u r an s w er t o t h e n e a res t d o ll a r . Do NOT ro u n d u n t i l yo u ha v e c a l c u l a t e d t h e f ina l an s w er .

Amount : 11083.59

Solution steps

Translate the problem into an equation:

A = 9900 (1 + \frac{0.019}{1})^{1 \cdot 6}

9900 (1 + \frac{0.019}{1})^{1 \cdot 6} = 11083.58608 \dots

Round to the nearest hundredth:

11083.59

Amount : 11083.59