en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

Tessa invests 5400 in a new savings account which earns 5.2% annual interest, compounded continuously. What will be the value of her investment after 8 years? Round to the nearest cent.

Solution

T ess a in v es t s 5400 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 5.2% 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 8 ye a rs ? R o u n d t o t h e n e a res t ce n t .

Solution

Amount : 8185.78

Solution steps

Translate the problem into an equation:

A = 5400 e^{0.052 \cdot 8}

5400 e^{0.052 \cdot 8} = 8185.78369 \dots

Round to the nearest hundredth:

8185.78

Amount : 8185.78

Popular Examples

six times the sum of a number and 2 is 3 The meteorologist made a forecast that a cold front was coming through and the temperature would steadily drop 24.8 degrees over the next 6 1/4 hours. How much did the temperature drop each hour?The radius of a circle is 10 m. Find its area Montraie invests money in an account paying a simple interest of 6.8% per year. If he invests 130 and no money will be added or removed from the investment, how much will he have in one year, in dollars and cents?Josie has 4,000 in an account that earns 5% interest compounded annually.To the nearest cent, how much interest will she earn in 1 year?