Ariana invested 7,500 in an account paying an interest rate of 2.9% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 14 years?

Solution

A r iana in v es t e d 7, 500 in an a cco u n t p a y in g an in t eres t r a t e o f 2.9% 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 14 ye a rs ?

Amount : 11256.02

Solution steps

Translate the problem into an equation:

A = 7500 e^{0.029 \cdot 14}

7500 e^{0.029 \cdot 14} = 11256.01914 \dots

Round to the nearest hundredth:

11256.02

Amount : 11256.02